Strategic Management

In: Business and Management

Submitted By darwisyfawwaz
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Pages 10
1. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approaches that Built Build-a-Bear is employing?

Build-a-Bear Workshop closely approximates by employing a Focused Differentiation Strategy which concentrating on a narrow buyer segment by meeting specific tastes and requirement of niche members.

A focused strategy keyed to differentiation aims at securing a competitive advantage with a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers (as distinguished from a broad differentiation strategy aimed at many buyer groups and market segments).

Successful use of a focused a differentiation strategy depends on the existence of a buyer segment that is looking for special product attributes or seller capabilities and on a firm’s ability to stand apart from rivals competing in the same target market niche.

Build-a-Bear Workshop employs successful differentiation-based focused strategies targeted at upscale buyers wanting products and services with world-class attributes. Indeed, most markets contain a buyer segment willing to pay a big price premium for the very finest items available, thus opening the strategic window for some competitors to pursue differentiation-based focused strategies aimed at the very top of the market pyramid.

2. Critic the chosen strategy in terms of effectiveness, suitability and competitiveness for a company to succeed in a challenging global business environment.
Selling brand experience was not something new in the retail industry, but combining it with the teddy bear was a unique concept from Build-A-Bear Workshop. Nobody expected the small start-up selling customizable teddy bears and other stuffed animals to make any profits, let alone become one of the country’s fastest-growing…...

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