Step Six — Evaluate the results. Buyers use the product in a variety of different ways and have high switching costs in changing from one seller's product to another C. While the strategy itself is important, the ability to execute it is the only thing that counts. E buyer switching costs are high and the industry's products are weakly differentiated. D buyers are not swayed by advertising and are not very brand-loyal.
D A low-cost provider strategy is quite suitable for situations where there are few ways to achieve product differentiation that have value to buyers, where most buyers utilize the product in the same ways, and buyer switching costs are low. Consider the impact of your actions and the changes you may want to make in the following areas: Cook, p. Graphically continuous improvement looks like the following: Kotler, p. Buyer needs and uses of the product are diverse C. While small businesses might not be able to compete with the high levels of efficiency that large companies achieve, they can use economies of scale to out-compete other small businesses. E most rivals are pursuing best-cost or broad differentiation strategies. How does this all relate to strategy? Any differentiating feature that works well is a magnet for imitators, although imitation attempts are not always successful.
Implementing Strategy The author found hundreds of articles on grand strategies, and for the most part they all dealt with military or political issues. B a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment that is less costly to satisfy as compared to other parts of the market. It is interesting to note that adaptive persistence has been attributed to the success of many Japanese strategies. Getting trapped in a price war with low-cost leaders Answer:b Focused strategies keyed either to low-cost or differentiation are especially appropriate for situations where A. The manager should also work diplomatically with senior management in order to facilitate certain changes that require approval.
Developing economies of scale refers to how businesses can optimize profits by scaling up their operations while pursuing greater efficiency. Take the case of British Airways, which initially ignored low-cost rivals such as easyJet and Ryanair; then set up a low-cost carrier called Go, which it sold in 2002 to easyJet; and finally differentiated its services in several ways. According to Michael Porter, there are three different way to sustain a competitive advantage. The fact is that both are critical to success. Seeking out high-quality inputs 8. The process is complete when roles and responsibilities have been assigned, and resources allocated. Increasing the intensity of marketing and sales activities 7.
Plan refers to developing the strategic objectives and allocating resources to deploy the plan. This is not a fun position to defend. Blue Ocean Strategy A blue-ocean strategy is based on discovering or inventing new industry segments that create altogether new demand, thereby positioning the firm in uncontested market space offering superior opportunities for profitability and growth. Second, companies must be able to persuade consumers to pay for benefits. The fact is that both are critical to success. Furthermore, since low-cost players have limited product ranges and service capabilities, they cannot offer solutions. At all levels, people who have the needed skills, motivation, and personal characteristics must staff the company.
Motivation is enhanced if employees are empowered to accomplish their goals and are linked to the corporate culture and objectives. Strategy is a directional statement that serves as a central theme guiding and coordinating integrated actions in the pursuit of competitive advantage. This strategy involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. Buyer needs and preferences are too diverse to be fully satisfied by a standardized product B. When you select a pricing strategy--that is, decide how you wish to price your products or services--what is your goal? Get the company into the best strategic group and then dominate it Answer:b A company achieves competitive advantage whenever A.
The following are the most basic strategies. B low-cost leadership, broad differentiation, best-cost provider, focused low-cost, and focused differentiation. Hinges on a company's success in developing top-of-the-line product features that will command the biggest price premium in the industry E. The greater consistency of emulsion explosives and better-placed holes required quarries to drill fewer blast holes, which reduced costs. That approach helps both parent and subsidiary. E Both B and C.
Ensuring that both parties live up to their commitments. Gain buyer loyalty to its brand because some, maybe many, of its customers will have a strong preference for the company's differentiating features E. The one time that pricing can be a corporate strategy is when the company is positioned as the low-price leader. The company seeks to identify emerging opportunities and continuously strive to develop and deliver new products. By offering products and services as an integrated package, companies can expand the segment of the market that is willing to pay more for additional benefits. The difference between good and great is usually having a formula, a well thought out plan.
Product What is a product? Strategic Alliance A strategic alliance is a formal agreement between two or more separate companies in which they agree to work cooperatively toward some common objective. Cost focus - business seeks a lower cost advantage in only one or small number of market segment. Most companies see selling solutions as a way to hawk more products at higher prices. Many buyers view the product's differentiating features as having value B. There are few ways to achieve product differentiation that have value to buyers C.