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ACTIVITY 2 :
Cost Leadership
In cost leadership, a firm sets out to become the low cost producer in its industry.
The sources of cost advantage are varied and depend on the structure of the
industry. They may include the pursuit of economies of scale, proprietary
technology, preferential access to raw materials and other factors
Differentiation
In a differentiation strategy a firm seeks to be unique in its industry along some
dimensions that are widely valued by buyers.
Focus
The generic strategy of focus rests on the choice of a narrow competitive scope
within an industry. Focus Strategy has 2 variants :
A. In cost focus a firm seeks a cost advantage in its target segment.
B. Differentiation focus a firm seeks differentiation in its target segment.
1. Easy Jet : The Purpose of this study is to analyze and measure the competitor
scheme that Easyjet have utilized order to develop their current competitory
place in the low monetary value no frills air hose market.
2. Porsche : The Competitive Strategy of Porsche, The Strength of Porsche,
Brands recognition and reputation with high quality product, advanced
technology in R&D and focus to sport car brand recognition. But Porsche have
Weekness too, Small size and unable to identify customer needs.
3. BMW : BMW obtains a very competitive strategy position on the market. The
company is ruled by the team who is able to raise the price level and gain
more or less strong market position. At the very beginning the strengths
included high potential to growth and profitability of the company, and
professional management team.
4. Sony : Competitive Strategy of Sony , incredible rise in the field of
electronics is due to their innovation and high technology products. Sony
prides itself on its history of “imagination and innovation” in the industry.
5. LG : LG Corporation has a massive product line and length that is diversified
acros the product categories in both white and brown goods. But one of the
flaws or downsides of LG can be perceived in its management.
6. Hitachi : Hitachi Data Systems provides information technologies, services
and solutions that help companies improve IT costs and agility, and innovate
with information to make a difference in the world.
7. Vodafone : Vodafone came up with differentiation strategy when they
launched I phone service, even though they were charging their customer
more than their competitors but they still got the edge over others by
offering free Vodafone to Vodafone calls for life time calls and better network
strength compared to other competitors. Cost Leadership Vodafone has
started “Home Cell” tariff for its Metro Digital service. In this offer off-peak
calls from a specified location (such as office) for 5 pence (8 cents) a minute
were provided. Focus Vodafone introduced One Net, a hosted fixed and
mobile voice service for SMEs . this move is regarded as to be very effective
move for Vodafone as Vodafone’s model is to charge per user, per month and
claims the total One Net solution can be 15%-20% cheaper than SMEs pay for
typical services currently.
If I classify from Competitive Strategy with other organizations operating within the
same
industry. Classify High To Low :
Airline Industry :
1. BA / British Airlines
2. Virgin Airlines
3. EasyJet
Car Industry :
1. BMW
2. Porsche
3. Skoda
Electronic Industry :
1. Sony
2. Vodafone
3. LG
4. Hitachi
ACTIVITY 3:
1. AMAZON: To be earth's most customer centric company; to build a place
where people can come to find and discover anything they might want to buy
online
2. NOKIA: A world where everyone can be connected
3. IKEA: To create a better everyday life for the many people
ACTIVITY 4:
1. GOOGLE: To organize the world's information and make it universally
accessible and useful.
2. DEL: To be the most successful computer company in the world at delivering
the best customer experience in markets they serve.
3. E-BAY: To create the world’s leading e-commerce franchise.
4. COCA COLA: To refresh the world - in mind, body and spirit; inspire moments
of optimism - through our brands and actions, and create value and make a
difference - everywhere they engage.
ACTIVITY 5:
To let you experience the best prices with most comfort.
RESUME:
The purpose and strategy are seen as devices to unify, constrain, coordinate
and motivate
the organisation. Strategy may result from a formal and planned process or
may emerge
from a collection of decisions and actions. overall strategy will be influenced
by
perspectives on the environment and convergence.
It must decide and make choices about where to compete (geographic
scope),
the product to sell (product scope) and the activities to perform (vertical
scope). Such
decisions determine the boundaries for action. This is achieved through
synergy - by enabling resource sharing and mutual support.
A variety of strategies were discussed such as cost leadership, and
differentiation, focus and time based competitive advantage.
we considered the implementation of strategy, noting the remaining parts of
the book would focus on this. Implementation concerns the allocation of
resources typically through plans, the structure and budgets.