...As we have learned form this week’s readings and lecture notes, an organizations strategy is critical in gaining competitive advantage in ones market. Corporate strategy serves as the roadmap to the organizations success in achieving its pre-defined objectives. The organization must possess a unique strategic management guide in order to perfect business practices that drive profit and meet the needs of the market. As the article suggests, Emirates, Qatar, and Etihad have certainly emerged as strategic competitors in the aviation industry. Emirates, Qatar, and Etihad have built their strategy based on adaptability to change in the aviation industry environment as well as advantages they find within their home countries. Some examples are as follows: * Capitalize on open land- Market leaders such as America and Europe have no land available for expansion projects, opening the door for Emirates, Qatar, and Etihad to build new ideal routes into their projects. * Open Skies policy-The policy has made it easier, cheaper, and more comfortable for people to pass through Dubai than London. * Low operating and overhead costs- relaxed labor practices allow Emirates, Qatar, and Etihad to pay lower wages to their employees than most competitors in the US and Europe. This reduces overhead and allows for more competitive pricing thereby making for a more attractive customer option. * Entering untapped markets- moving into markets that were otherwise unconnected...
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...Basic principals of competitive strategy Industry(whether product or service) is a group of competitors producing products or services that compete directly with each other-to understand competition Distinct industry with similar sources of competitive advantage 2 central concerns underlie the choice of competitive strategy: Industry structure-where firms compete. Industries differ in the nature of competition, and they don’t offer equal opportunities for sustained profitability. Positioning within an industry-some positions are more profitable than others Both industry structure and competitive position are dynamic. Industries can become more or less attractive over time, as barriers to entry or other elements of industry structure change. Competitive position reflects an unending battle among competitors. Industry attractiveness and competitive position can be shaped by firms. The structural analysis of industries In any industry, whether it is domestic or international, the nature of competition is embodied in 5 competitive forces The threat of new entrants-brand loyalty, economies of scale, the need to penetrate distribution channels. The threat of substitute products or services The bargaining power of suppliers The bargaining power of buyers The rivalry among the existing competitiors The strengths of the 5 forces varies from industry to industry and determines long-term industry profitability. In industries in which the 5 forces are favourable e.g....
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...competitive behaviour 2. Industry structure is (fairly) stable. [pic] Case: Airline Industry …. Porter’s 5 forces – purpose: Identifying the different stakeholders, or ‘forces’, which affect: • The level of competition in an industry. • The ability of a company to become powerful in that industry. Threat of New Entrants : • Company’s Point of view • Industry Point of view • Huge Capital Required • High Maintenance Cost • Brand Identity. • Govt. Policy Supplier’s Bargaining Power • Aircraft Manufacturers • Fuel Companies Buyer’s Bargaining Power • Travel Agents • Business Travelers Threat Of Substitute • Railway service • Bus service • Water Transport • Video conferences (for business flyers) Competitive Rivalry • Highly Competitive Industry. • Can work as growth driver for Industry. External Analysis: Porter’s Five Forces Threat of New Entrants HIGH Threat of Substitute Products MEDIUM Buyers’ Bargaining Power LOW Suppliers’ Bargaining Power LOW Industry Competitors Rivalry Among Existing Firms HIGH Dynamic Competition Competition changes industry structure: – Schumpeterian Competition: A “perennial gale of creative destruction” –market leaders overthrown by innovation – Hyper...
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...credit cards. Therefore, the need for better credit card services intensified. 3) China’s internet industry experienced remarkable growth during the first years of the twenty-first century. Ebay: 1) Leveraging its worldwide capabilities in order to compete against home-grown rivals in China. 2) Ebay acquired one-third of EachNet’s share in March 2002, and the other two-thirds a year later. 3) Ebay used capital from its IPO and the accompanying higher pressure for growth and reached beyond the United States for additional gwoth opportunities. 2. What were the key resources and capabilities that led to Taobao’s success in the competition with Ebay? 1) Competing for customers: Taobao approached advertising very differently than did Ebay. Taobao launched with an entirely no-fee model. It further extended the no-fee plan for three additional years starting in 2005. 2) Competing in payment services: the workforce at Taobao worked feverishly to launch its integrated payment system, AliPay, within three months of the website’s official launch in 2003. 3) Competing for Partnerships: Taobao and Sohu entered into a partnership, giving Taobao a foothold in online advertising. 3. What was Taobao’s business strategy and why did it succeed? Low rivalry among existing firms: few competitors. The main competitor was eBay. Low entry by potential competitors: because Taobao almost a...
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...Management • Do you agree with the claim and what grounds can you provide to support your stance? • Can an organization ever be in such a situation in which it does not encounter any competition whatsoever? | | | |TABLE ON CONTENTS |PAGE | |What is strategy |03 | |LEVELS OF STRATEGY |03 | |Corporate strategy |03 | |BUSINESS STRATEGY | | |FUNCTIONAL STRATEGY | | | |04 | |strategy in absence of competition | | | ...
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...Competitive Advantages Paper Erika Hamel MGT/498 John Paul Warren 08-11-14 Riordan Manufacturing has a lot in common with the two companies I researched last week. Both Nike and A.O. Smith are trying to a find competitive edges to stay ahead of their competitors, and remain number one against their competition. Riorden is trying to do the same thing. They are trying to implement a tracking system that will track and manage raw material, and finished products across all plants. This will reduce their inventory costs, which in return can make their prices more attractive and cheaper for their customers. This could give them a competitive edge against their competitors. A.O. Smith is trying to create a world class supply chain that has the capability to deliver their boilers and heaters in a time efficient manner to the more than 60 countries in which they operate. This will give them the global advantage of being able to sell their products all across the world, which in return will make them a much bigger company, and increase profits. Nike also is constantly trying find ways to stay current and ahead of their competition. Nike has implemented a manufacturing index, which allows their organization to take a comprehensive look at their factories total performance, and the techniques those contract factories are using to achieve sustainability (Nike, 2012). Nike’s manufacturing index is a very effective assessment tool as it allow Nike to “elevates labor and environmental...
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...Competing in the market An organization or (firm) needs to know how to be able to think like its competitors to sustain its competitive advantages in its market place. The first step in being able to think like your competitors is to understand a competitor analysis. Market commonality and Resource similarity are the concepts to the building blocks for a competitor analysis. Motivation, awareness, and ability, are more specific factors that affect the likelihood a competitor will take competitive action. First things first, who is a competitor and what is a competitive rivalry? Competitors are firms who compete in the same market, with similar products, and targeting the same customer demographics as your firm (Hitt, 2008). As the firms compete in the same market an ongoing set of competitive actions and competitive responses occur between competitors as they compete against each other for a market position, this is known as competitive rivalry (Hitt, 2008). Knowing your competitors by studying competitive rivalry in order to predict the competitive actions and responses that each of their competitors likely will take. The firm’s first step is a competitor’s analysis (Hitt, 2008). Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors (Hitt, 2008). This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Thus, understanding...
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...Understanding the Competition “Know your [competition], know yourself and you can fight a hundred battles without disaster.” ~ Sun Tzu YOU are running a company, advising companies or would one day like to be. A company needs to understand its competition, and here are 11 points to help you do that. 1. Identify the competition Who are the company’s major competitors? Taking Cadbury as an example, some of its major competitors are Lindt, Ferrero, Nestlé, Hershey and Mars. 2. Segment Are you able to segment the competition in a meaningful way? You may be able to segment by distribution channel, region, product line, or customer segment. For example, the FOX Broadcasting Company may want to segment its competition by region. In America, some of its major competitors include PBS, NBC, CBS and ABC. In Australia, its competitors include Channel 7, 9 and 10 as well as ABC and SBS. 3. Concentration What is the concentration of competitors in the market? That is, are there lots of small competitors (a low concentration industry) or a few dominant players (high concentration industry)? Examples of high concentration industries include oil, tobacco and soft drinks. Examples of low concentration industries include wheat and corn. 4. Size What is the sales volume and market share of the major competitors? 5. Growth What are the historical growth rates of the competition? 6. Performance What is the historical performance of the competition? Relevant indicators of performance...
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...1. Netflix is positioned well on Porter's matrix, utilizing both a low cost strategy to attract and retain "heavy users" of their service as well as a differentiation strategy for those customers who don't want to spend time going to an actual store to rent DVD's. Additionally, the rating system Netflix uses suggests other videos a customer may be interested based on the unique ratings of past movies they've seen. Netflix may be at risk to lose the low cost aspect of their business with increasing pressure from Amazon as well as profit erosion caused by increasing postage rates. With Netflix being so popular, they are able to see exactly who their competitors are and work out better themselves. 2. Netflix’s main competitive strategy is to get subscribers on their online delivery program to make it easier for their customers to get the product. Not having to leave the comfort of their own home, customers are able to receive DVD’s of their choice whenever they want through mail, and return those DVD’s whenever they want. This idea allows the consumers to have a no pressure feel while having their DVD’s. Netflix competes on a Differentiation/Cost Leadership strategy as their target scope is broad and they offer a fairly unique service to their customers, but also appeal to frequent renters as a low cost alternative to a traditional video rental store. It is nice to customers to not be able to leave their home and have Netflix right at the click of a button. Now they even have...
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...Consider Singapore retail firms (retailers) and discuss if oligopoly or monopolistic competition best explains these retailers’ market behaviour. Does oligopoly or monopolistic competition better explain the market behaviour of Singapore retail firms? First, a few definitions are in order. First, retailers are firms that do not produce their goods that are sold, but only sell goods which are in turn manufactured by manufacturers or producers. Second, oligopoly is characterised by many buyers but few sellers, each of the sellers interacting strategically against their rivals, which are the other firms competing in the oligopolistic industry, and there are high barriers to entry, usually caused by high economies of scale. Third, monopolistic competition is a market structure where there are many buyers and sellers, few barriers to entry, and differentiated products that are quite different from other competitors, but psychologically or physically different. For example, NTUC and Giant hypermarket are examples of oligopoly while clothing retail shops such as Charles and Keith are examples of monopolistic competition. First, monopolistic competitive firms can make independent decisions on pricing and output, whereas oligopolies are mutually interdependent because they are rivals rather than competitors. There is price stickiness in oligopoly, shown by the oligopoly kinked demand curve model, which shows there is no incentive for firms to raise or lower prices as long as...
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... System 2: Stability It is completely absent that the food market is filled with other competitors who alert the stability of the system, some new and sudden constants as the new produces launched or fluctuation of market and customer demands may interpret the flow of work and then cash flow affection and can't be prevented. System 3: Cohesion There is a strong co-operation facilities in associated British food organization, its information system works in place; there is no alert that annual meeting is continuously implemented strong its working climate and co-operation for all teams sales, production and marketing. System 4: Planning It is mainly consists the main system of ABF organization, planning for operation gives every team ideas about the outside climate and food sector competition giving attention about what and where the company are and what it will achieve and how it will achieve it. System 5: Policy Policy of ABF Company respected from all members and employees feel satisfied about this matter, good and continuous planning beside employees and management co-operation, that managers gives workforce the strength to be more autonomous and achieve high level of performance. Result from diagnosis of complexity via five internal systems of VSM on system of focus: From previous diagnosis, the company could give a concern to the stability which is missed from this system * As a result of stress from competition and high budget, stability is missed;...
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...Strategic Analysis MGMT 460 By: Darien Jackson Table of Contents Chapter 1. INTRODUCTION 1.1. Company Background. 1.2. Vision and Mission. 1.3. Longterm Objectives. Chapter 2. EXTERNAL ASSESSMENT. 2.1 Michael Porter’s FiveForces Model. Chapter 3. INTERNAL ASSESSMENT. 3.1 ResourceBased View Analysis. 3.2 Financial Analysis. Chapter 4. STRATEGIES IN ACTION. 4.1 The Strategies. 4.2 Michael Porter’s 4 Generic Strategies. Chapter 5. STRATEGY ANALYSIS AND CHOICE. 5.1 The StrengthsWeaknessesOpportunitiesThreats (SWOT) Matrix. 5.2 The Strategic Position and Action Evaluation (SPACE) Matrix. 5.3 The Boston Consulting Group (BCG) Matrix. 5.4 The InternalExternal (IE) Matrix. 5.5 The Grand Strategy Matrix. Chapter 6. CONCLUSION. 6.1 H&M’s Competitive Advantage. 6.2 Vision, Mission, and Strategies. BIBLIOGRAPHY Introduction 1.1. Company Background In 1947 Hennes women’s clothing store opened in Vasteras, Sweden. Today the Hennes & Mauritz (H&M) Group offers fashion for everyone under the brands of H&M, COS, Monki, Weekday, Cheap Monday and & Other Stories, as well as fashion for the home at H&M Home. Their business concept is fashion and quality at the best price in a sustainable way. H&M should always have the best customer offering in each and every market. H&M offers collections that are wideranging...
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...Name: Jane Holman Student Number: 220034259 Unit: MM 302 Assignment: Assignment one - essay Due Date: 20 August 2010 0 Introduction The following report goes into detail about the governments involved in a market economy, the government influences four main areas in the economy which are; enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Also the report will cover why there can never be a truly ‘free market’ economy, where there is absolutely no government intervention. Market Economy In a market economy, the majority of a nation’s land, factories, and other economic resources are privately owned, either by individuals or businesses (Wild, Wild & Han 2010:151). It is also an economy in which prices of goods and services are freely set based on the laws of supply and demand which are unfettered by interference from a government or other outside bodies. A market economy at its basic is an economy run entirely by the market itself (McGuigan 2003:1). In contrast to a market economy is one which follows the Keynesian principals which is an economic theory which advocates government intervention, or demand side management of economy by increasing money supply or by actually buying things on the market itself, they believe that this will achieve full employment and stable prices (Web finance 2010:1). Market economy has come to be accepted as a norm across the world with many developing...
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...ORGANIZATIONAL ANALYSIS It is evident that the greatest strength that Southwest Airlines has is its financial stability. As known in the US airline industry, Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability, the corporation is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate. Having a low amount of cost in their operations is one of the contributing factors in Southwest Airlines’ financial success. Such low cost model of the corporation is brought about by an effective strategy. Southwest uses only one type of aircraft – the fuel-efficient Boeing 737. This tactic keeps training and maintenance costs down. Moreover, the no-frills approach to customer service contributed to the low cost of operations for Southwest. The airline does not serve meals on board, and there are no luxurious or first class seats offered. Services like these have been seen by the airline as unnecessary for an airline that provides a short-haul trip from city to city. By these, Southwest were able to offer low price tickets to customers, which was good for the company because most people would prefer to fly without those services mentioned if it meant for cheaper ticket price. Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest...
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...Company G 3-Year Marketing Plan Table of Contents Introduction 3 Mission Statement 3 The Product 3 Consumer Product Classification 3 Target Market 3 Competitive Situation Analysis 4 Analysis of Competition using Porter’s 5 Forces Model 4 SWOT Analysis 4 Strengths 5 Weaknesses 5 Opportunities 5 Threats 6 Market Objectives 6 Product Objective 6 Price Objective 6 Place Objective 6 Promotion Objective 7 Marketing Strategies 7 Product Strategies 7 Price Strategies 7 Place Strategies 7 Promotion Strategies 7 Tactics and Action Plan 8 Product Action Plan 8 Price Action Plan 8 Place Action Plan 8 Promotion Action Plan 8 Monitoring Procedures 9 Introduction Company G was founded in 1994, over its twenty years In existence Company G has become one of the most recognizable names in the small electronics market. This may the company will be launching a new product the G-Force Blender. This blender is designed to make smoothies and blend food in record time. This products target market is huge as it expands between men and women 18 to 50 years of age who are looking to like a healthy life, Therefore with the huge market Company G is hoping to reach it is looking to launch this product internationally in hopes it will make life more convenient for its customers. Mission Statement “We enable consumers to improve the quality and convenience of their lives by providing innovative electronics solutions.” The Product The G-Force Blender will provide its...
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