5.1.

Porter’s Strategic Options

Leading organizations such as Gainesboro Machine Tools Corporation have obtained

sustainable competitive advantage and have had the option to achieve the strategic position.

A firm can depend on innovation to decrease its overall production costs and would then be
able to pass this advantage on to its clients.

Gainesboro Machine Tools Corporation can also concentrate on making a differentiated item
or administration to increase its overall share of the pie.

5.1.1. Differentiation strategy

5.1.1.1. Organizational Leadership

Gainesboro Machine Tools Corporation has made use of the differentiation factor to maintain
higher leadership and differentiation from industry competition. Differentiation of effective
leadership may be achieved through different forms and basis.

5.1.1.2. Broad product portfolio

5.1.1.2.1. Product Quality

Moreover, this differentiation can fluctuate from item to item, market to market and industry to
industry. Generally, the essential bases of differentiation are quality, durability, usefulness and in
a few consumer loyalty, and brand image. Gainesboro Machine Tools Corporation has
differentiated its items and products dependent on the quality and set a completely different,
and engaging consumer experience. Brand image

5.1.1.2.2. Brand Image

Aside from these things, it has developed a distinct and distinguished brand image which is
additionally a premise of differentiation and encourages Gainesboro Machine Tools Corporation
to advertise, promote and market its products and brand better than the competing players in
the local and international markets.

5.1.2. Focus strategy

5.1.2.1. Overall Quality of product and service

The essential premise of differentiation for Gainesboro Machine Tools Corporation is quality and
premium taste. It serves just premium quality products, which enables it to charge a top notch
and a premium cost. It has embraced the most astounding measures as far as the nature of its
raw materials used for producing its products. At each progression, Gainesboro Machine Tools
Corporation puts forth an admirable attempt to guarantee that its product fulfils the most
noteworthy quality guidelines.

5.1.2.2. Value addition at each step of the value chain

However, the account of value does not finish at getting incredible quality of raw materials. It
goes more remote from that point. A great deal of contrast originates from the readiness.
Gainesboro Machine Tools Corporation prepares its product diligently to draw out the quality.

5.1.2.3. Human resource management

Rest of the credit goes to the human resource and employees at Gainesboro Machine Tools
Corporation. The brand carefully picks its raw materials - just when they in ideal condition.
Products are tested from each cluster in any event thrice before endorsement. This is how
Gainesboro Machine Tools Corporation makes the quality that each client looks forward to, and
is excited about.

5.1.3. Leadership and differentiation through cost

Porter’s traditional methodologies are methods for increasing and developing a sustainable
competitive advantage for Gainesboro Machine Tools Corporation - as it was, building up the
"edge" that will get the company the ideal position and differentiates it from the industry rivals.
There are two primary methods for accomplishing this inside a cost leadership methodology:

Increasing profits by decreasing expenses, while charging industry-average prices and costs
from consumers

Increasing share of the overall industry by charging lower costs, while at the same time making
a sensible profit on every trade since Gainesboro Machine Tools Corporation has controlled and
reduced expenses.
The cost-based strategy and system are that – it includes Gainesboro Machine Tools Corporation
being the pioneer regarding cost in the industry and market where it operates. Just being among
the most minimal cost producers isn't adequate, as the company leaves itself wide open to
aggressive attacks by other producers and players in the industry. These players may undermine
Gainesboro Machine Tools Corporation’s costs and in this way hinder the company’s endeavours
towards the expansion of its share of the overall market pie.

5.1.3.1. Achieving cost differentiation

Based on this, Gainesboro Machine Tools Corporation should be sure that it can accomplish and
keep up the leading position before deciding on choosing the cost leadership strategy.
Gainesboro Machine Tools Corporation will be able to become effective in accomplishing cost
differentiation by having:

Access to the capital expected to put resources into innovation that will cut expenses down.

Very proficient coordination’s.

A minimal effort base (work, materials, offices), and a method for economically cutting
expenses beneath those of different competing players.

5.1.3.2. Achieving cost leadership

However, Gainesboro Machine Tools Corporation should ensure contingency for imitation by
competition, as well as be prepared for competing payers to imitate its cost-effectiveness
strategy to decrease and control their costs, and increase the overall share of the pie for their
products as well. It is therefore important that Gainesboro Machine Tools Corporation does not
only settle for one means of cost leadership but continually improves. This can be done through
several different methods:

5.1.3.2.1. Overall Cost Effectiveness through Cost Leadership and Cost Differentiation

Cost differentiation and leadership strategy for Gainesboro Machine Tools Corporation will be
based on the nitty-gritty.

Cost initiative endeavours towards slicing expenses to a base to give clients lower costs and in
this manner will help the company of Gainesboro Machine Tools Corporation to reserve funds.
 Cost leadership strategy requirements regularly identify with high specialized abilities and
access to capital

The company should also resource into innovation and guarantee economies of scale.

5.2. SWOT Analysis

The SWOT analysis for Gainesboro Machine Tools Corporation is presented below:

Strengths (Internal Strategic Factors)

·0 Strong brand image

·1 International distribution network

·2 Strong investment in research and development, and high focus on innovation

·3 Focus on market research

·4 Gainesboro Machine Tools Corporation Weaknesses (Internal Strategic Factors)

·5 Premium prices for most portfolio products

Weakness (Internal Strategic Factors)

·6 Premium prices for most portfolio products

·7 Standard and benchmarked regulations and business procedures for all portfolio items

·8 Generalized standards for all portfolio products

·9 Fighting the challenge of imitation

Opportunities (External Strategic Factors)

·10 Green business products

·11 Expansion in emerging markets

·12 Business enhancement

·13 Partnerships with different firms

·14 Diversification through Partnerships.

 ·15 Development of corporate clientele

Threats (External Strategic Factors)

·16 Price wars by competition

·17 Increased competition

·18 Independent players (retailers and marketers)

5.3. TOWS Matrix

The analysis of the SWOT and the subsequent assessment and development of the TOWS matrix
will allow the Gainesboro Machine Tools Corporation to be able to identify the following
answers:

Strengths and Opportunities (SO) – How would Gainesboro Machine Tools Corporation be able
to utilize on its strengths to exploit the opportunities?

Strengths and Threats (ST) – How would Gainesboro Machine Tools Corporation be able to
exploit its strengths and core competencies to keep away from genuine and potential threats?

Weaknesses and Opportunities (WO) – How would Gainesboro Machine Tools Corporation be
able to capitalize on its opportunities to overcome the weaknesses that Gainesboro Machine
Tools Corporation is encountering?

Weaknesses and Threats (WT) – How would Gainesboro Machine Tools Corporation be able to
limit its weaknesses and evade threats?

5.3.1. TWOS matrix visual presentation

5.4. ANSOFF Matrix

Gainesboro Machine Tools Corporation has viably utilized this instrument to develop a
procedure for accomplishing competitive advantage in the industry and various markets it
operates in.

Recently, Gainesboro Machine Tools Corporation has made use of the four strategies of Ansoff
matric to maintain competitive advantage and leadership position. These strategies are
 ·19 Market development

·20 Market penetration

·21 Product development

·22 Product penetration

The following section highlights the various strategies that may be used through the Ansoff
matrix. These strategies have been highlighted and identified through vigorous research
methodologies, as well as through expert analyst data and opinion.

5.4.1. Market development strategies

·23 Advertising and promotion of products

·24 Education about product consumption.

5.4.2. Market penetration strategies

·25 Geographical expansion

·26 Increased number of retail outlets and retail presence

·27 Online retailing

5.4.3. Product development strategies

·28 Research and development

·29 New product development labs

·30 Market testing

·31 Strategic Marketing

5.4.4. Product penetration strategies

·32 Acquiring personally owned retail to strengthen its presence.

·33 Diversification of portfolio

6. FINAL RECOMMENDATIONS
Based on the overall internal and external analysis done for Gainesboro Machine Tools
Corporation, this section will offer recommendations which will help the company take on
strategic directions that will enhance its core competencies and capabilities, as well as reduce its
chances for risks and threats? The following recommendations are thus made for Gainesboro
Machine Tools Corporation :

6.1. Strengthen distribution network

6.1.1. Control

This is an important strategic recommendation as it will allow higher control to the company
over its products in different markets. The company will be able to control where its products are
placed, and thereby, will also be able to enhance the accessibility and easy availability of its
products.

6.1.2. Stronger relation with consumers

At the same time, the strengthening of the distribution network will allow the company to work
more closely with end consumers by being able to reach them with the same high quality of
products across different markets.

6.2. Develop unique marketing tactics

6.2.1. Higher penetration

This strategic recommendation will help the company reach a higher number of consumers and
penetrate deeper into target consumer groups. Also, this strategy will allow the company to
increase trial and consumption and sales of its products.

6.2.2. Forming a partnership with consumers

Unique marketing tactics will involve new and informed strategic means of communicating with
the consumers and engaging them with the brand. One way that this can be done is by making
consumer co-producers for the brand. Another way that Gainesboro Machine Tools Corporation
can do this is through co-branding with other similar, yet dissimilar brands and companies to
enjoy higher market visibility amongst target consumers.
6.3. Adapt to different cultural aspects of different markets

6.3.1. Identify different consumer group characteristics

Each market and target group has distinct characteristics. This recommendation is suggested so
that the company can connect better with different target groups in different markets.

6.3.2. Adapt to and respond to characteristics

By adapting to different cultural and regional characteristics, the company will be able to present
itself better to target consumers – who would then feel a greater affinity, and more likeliness of
consuming the product and the service.

6.4. Expand into new regions

6.4.1. Market expansion

Another strategic recommendation for Gainesboro Machine Tools Corporation is to expand into
newer regions and markets. This can be done by expanding into new markets, firstly. This
expansion will give the company exposure to new consumer groups. Increase the overall
consumption rate, as well as diversify income streams. Also, it will give the company related
expansion exposure regionally as well as internationally.

6.4.2. Product diversification

Another means of expansion is through product diversification. By adding new products, the
company will be Abe to penetrate deeper into existing markets bye exploring new consumer
groups, and new target consumer groups. This will also diversify income streams for the
company, and increase its overalls hare of the market.

6.5. Strengthen value network

By strengthening the value network further, and by adding quality and enhanced elements at
different stages, the company will be able to maintain competitive advantage, as well as put off
new players from the industry by increasing barriers to entry. This will allow the company to
maintain sustainable competitiveness over other players, as well as maintain a possible
leadership position in the local and international markets and industry.
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