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Strenghten the competitive position - Coggle Diagram
Strenghten the competitive position
Final Strategic Options to Strengthen the Company
Go Offensive
Focus on aggressively gaining competitive advantage.
Launch innovations that surprise the market and overwhelm rivals.
Be the first to introduce something totally new.
Examples:
Farmacias del Ahorro: sudden expansion and services like e-wallets and point systems.
Walmart: extreme price competition.
Ryanair: low-cost tickets disrupting the airline market.
Apple / Excel / Community Life: use of unique technology or business models unfamiliar to local markets.
Go Defensive
Block or delay competitors’ actions using existing strengths.
Example:
Taxi unions vs. Uber — used legal licenses to defend territory (e.g., airports).
Defensive strategies are temporary, not long-term solutions.
Key: determine how long you can hold your ground.
Be First Mover
Take initiative in launching products/services before competitors.
Build brand reputation and loyalty early.
Enjoy learning curve benefits ahead of rivals.
Must secure protection (e.g., patents, brand identity) to prevent imitation.
Example:
First movers in pharmacy may not be aggressive, but still lead the market.
Be a Follower
Wait, observe, and analyze market responses before acting.
Learn from leaders’ mistakes and replicate successful strategies.
Being a follower doesn’t mean being weaker — sometimes followers win.
Examples:
iTunes followed Napster but became successful.
Analyze the evolution of the market before taking action.
Abandon the Market
If industry conditions are no longer attractive, exit smartly.
Shift to a new opportunity using existing strengths.
Example:
Gigante supermarket couldn’t compete, so they pivoted to real estate using their valuable store locations.
Emerging Market Trends
Importance of Trends
Long-lasting trends are the ones to focus on.
Example: the "new economy" from the rise of the Internet is now a permanent shift.
Digital transformation is shaping how businesses operate.
E.g., learning via online platforms.
Trends like:
Outsourcing
Continuous learning
Engineering
Digitalization
Competing in Global Markets
Globalization
Reduced trade barriers allow cross-border competition.
Easier access to international suppliers and clients.
Achieve economies of scale and diversify risk.
Types of International Strategy
Global Strategy:
Think global, act global.
No product adaptation needed.
Example: Lego, Texas Instruments.
Transnational Strategy:
Think global, act local.
Small adaptations required.
Multinational Strategy:
Think and act locally.
High product/service adaptation per market.
Location as a New Competitive Strength
New “7th” Force in Porter’s Diamond: Location
Companies now split operations across countries:
e.g., Call centers in Mexico, Design in Europe, Manufacturing in Asia.
Take advantage of each country's strengths.
Enhances flexibility and competitiveness.