Discussion Question (250 words each)
1. Explain the following competitive strategies and use at least two corporate examples: Focus on market niche, low-cost leadership, product differentiation, customer-supplier intimacy.
2. What is the role of strategic planning in creating value for an organization? Provide an example of how a company uses strategic planning to create value for an organization.
3. How do metrics allow us to track the progress of implementation of the strategy? How is environmental scanning helpful in choosing the appropriate metric guidelines to use? Use examples
The market niche strategy is a strategy in which an organization focuses on a specific segment of the target market and pursues efforts to satisfy the unique needs and preferences of that particular market segment. Examples of niche market strategy would include hybrid automobiles such as Toyota Prius or luxury brands such as Rolls Royce. These products focus on a very niche and small segment of the total automobile market. Toyota Prius is focused on consumers who are passionate about environment whereas Rolls Royce only focuses on the super premium segment.
Low-cost leadership is a strategy in which an organization aims to achieve market leadership on the basis of pricing of its products or services. The company positions itself as the lowest cost provider of goods or services in the marketplace. Examples include Walmart or Costco which are considered low cost provider of retail products. These companies focus on a large market and aim to earn profit via economies of scale and higher sales volume.
Product differentiation is a strategy pursued by companies in which the companies try to differentiate their offering in the marketplace or establish a unique positioning for themselves via ...
Discusses questions related to competitive strategies, role of strategic planning