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G2-FBS-4 Determining Competitive Position (Which position is best? (five…
G2-FBS-4 Determining Competitive Position
Broad
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Cost
Cost Leadership
keeping cost lower than those of the competitors
offer standardized products with broadly acceptable product features
strategic approaches
Use low-cost inputs,offshoring
Walmart , Dell(computer)
in the supply chain(value chain)
State-of-the-art operations/continuous improvement
Nucor Steel(milling industry)
innovation withn their manufacturing process to lower the cost structure
Build market share
Anheuser-Busch(beer indusrty)
gain great economies of scale
Minimize overhead
Dell
invest a lot in R&D to lower cost
don't spend too much money on R&D or AD
Engage in cost-cutting
Walmart(retailing)
forcing those suppliers to drive their own cost down
Uniqueness
Differentiation
generating profits from higher willingness to pay
Unique feature, high quality, service and/or “prestige
command price premiums from unique features or from high quality or presige associated with the brand
strategic approaches
Develop innovative capability by R&D
Intel, Apple
Invest in human resources, R&D
Goldman
Create brand through AD
Nike(athletic gear and apparel)
endorsements with celebrity athletes
related to brand loyalty and recognition
Integrated Strategy
differentiated products at low cost
two essential policies
adopt total quality management or lean production techniques
invest heavily in R&D or innovation
Toyota is the company that worked well in this strategy
huge scope of market
various types of cars that stick with good quality
Narrow
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Uniqueness
Niche
through higher consumer willingness-to-pay to earn profits
premium segment of the market
strategic approaches
gain knowledge and expertise
Juniper Networks
build brand loyalty
Porsche
they created high-end sporty cars
Cost
Focused Low-Cost
Used as an entry strategy and advanced industry segment
Strategic approaches
Deter rivalry by dividing market
Budget airlines
Leave other parts of the market to other competitors
Capture narrow economies of scale
Generic drugs
Over just a very narrow set of products
Keeping costs lower in a narrow segment
Which position is best?
five forces analysis
capability analysis
The Strategist’s Challenge
generic competitive position
Competitive Scope Within Industry-Broad or Narrow
Source of Competitive Advantage-Cost or Uniqueness
Hi G2, great job!
But you don't really need to create two boxes for two lines of texts as below.