MODELS Five-Forces Model of the On-Line Retail Jewelry Market NEW ENTRANTS SUPPLIERS BUYERS SUBSTITUTES INDUSTRY RIVALRY Summary of the Competitive Nature of the Industry Generic Strategy Model Narrative summary of model analysis results Company Value Chain Narrative summary of model analysis results: Indicate which segments are most important and most costly and discuss the significance of the situation and what should be done. Competitive Strength Assessment Weight Blue Nile Other on-line only Major Chains Breadth of product line .15 Reputation/ Image .25 Quality/appeal of product offerings .15 Caliber/completeness of product information .15 Relative Cost Position .10 Customization capabilities .10
How to compete with bigger competitors. (2012). Is4Profit online magazine. Retrieved from: http://www.is4profit.com/business-advice/business-strategy/small-is-beautiful-how-to-compete-with-bigger-competitors.html • Although small companies can’t use economies of scale, they are more efficient in cutting costs, while examining their operating model. • Small businesses can deal directly with their clients, without using the “middle men”.
Identification of business strategy/goals Even though Tanglewood offers pretty much the same merchandise as other retail chains, they focus on offering a more quality product than what could be found at discount stores. Their stores have a more designer appearance that appeals to their middle to upper-income clientele, and offering quality products at moderate process all while providing excellent customer service keeps the customers coming back for more. The natural look that derives from the outdoors theme of the stores is further accentuated by the use of the store’s own brands of merchandise which can be found throughout the store. Online shopping is available through the company website, with in store pick-up availability and low-rate shipping. The company is looking to consolidate its current management strategy which is comprised of both the corporate and store level components.
Apple takes on a more product orientation approach as opposed to market orientation. This is because of their highly sophisticated, innovative products that have received such good responses over the past few years. Apple tries to create new innovative products by utilizing the strengths of their production teams. Apple knows what the customer wants before they do and they continue to produce products that sell themselves. Apple is not only product oriented.
Marketing Britvic Case Study – Assessment 1 1. Characteristics of the marketing concept. The Selling Concept – This concept doesn’t primarily focus on new consumer wants or desires but focuses on the selling and promotion of a particular already existing product in order to achieve the highest sales they possibly can. This technique is suited to companies who sell products which are in high demand and whose customers/consumers tastes are unlikely to change and lessen demand. The Production Concept – Companies focusing on this concept will primarily focus on achieving high production efficiency at low costs and mass distribution as they believe the consumers are primarily interested in widely available products at low prices.
Best Buy has always had a passion for bringing technology and consumers together and they try to do this by making shopping with them easy and fun for their consumers. To do this Best Buy tries to focus on educating their consumers on the features and benefits of technology and the entertainment products that they supply to them. Best Buy believes that their stores and the other products such as BestBuy.com and Geek Squad offer their consumers meaningful advantages over their competitors by offering better in store atmosphere, product value, customer service, and product selection. Best Buy used to be a product focused company in which they would worry about the products and use what the store sold to get consumers to come in to the store or go online and shop, but now they have switched to a customer focused company in which they rely on their superior customer service and aim to create better shopping experiences for their customers. Best Buy is switching to this way of doing business because it creates a greater customer loyalty and discourages people who shop with them
2. Summary State of the recommended solution: By Amazon.com expanding patented technology to develop a secure, easy to use platform for customers to use. “Partnering up with other suppliers and distributors participate in this online exchange would allow their affiliates to achieve greater operational efficiencies in their supply chain. These efficiencies would translate into lower prices for Amazon.com. A second additional benefit for Amazon.com would be the steady cash flow it would receive through the charging of hosting fees and commissions on completed transactions.” (Collins, Mockler & Gartenfeld, 2003) This is the best solution of Amazon.com because they would only be the host of the exchange and not have to hold any inventory.
Customers’ reactions to Wal-Mart’s new sustainability strategy showed that low or middle class consumers’ expectations are not limited to purchase only low price products; they are also willing to buy green, sustainable ones when they find them in affordable prices. This was a sign that Walmart is on the right track. Today’s business practice of Walmart needs to transform more -through quick wins which are actions that makes business sense based on available technologies, products and processes; innovation projects which base on emerging technologies, processes, and innovation; big game challenge which is a way to lead the market works for sustainability, not against it- to complete its sustainable pathway successfully and reach the sustainable business practices level. In this way, they should identify opportunities to develop supply chain, coordinate manufacturers and compete with the rivals. Company should find new ways to get greener supply chain with less capital, lower the operating costs and catch more competitive advantages in the market.
Product differentiation is a major part of new entrant’s struggle to gain market shares, much because of CC and PC’s strong brand name and consumers brand awareness. Other barriers to entry are also present, such as the incremental efficiency improvements CC and PC has made after being long-time, major market shareowners. Limited access to distribution channels can also keep new entrants from growing, as both CC and PC has built strong relationships with concentrate producers, bottlers, retail channels, and suppliers. Power of Suppliers First, we need to have a look at what the suppliers provide, which in this case is plastic
Operational excellence in production, supply chain operations and marketing, which according to Ingvar Kamprad (the founder of IKEA) enables them to continuously enhance their low cost/price model. Although the organization is still expanding, their entrance to the U.S. has been slightly hampered due to inconsistency between European and traditional U.S. furniture, and the mis-match between IKEA’s low cost philosophy and U.S. demand. This paper will therefore focus on how IKEA could meet U.S. customer demands in regards to quality, service and convenience whilst minimizing impact on their core concept. IKEA in North America IKEA’s popularity in Europe is easily traced back in their sales figures, indicating that roughly 80 percent of their total sales come from Europe, leaving a 20 percent share to Asia, Australia and North America. Entrance to the U.S. has been everything but smooth, but American sales figures have always maintained to stay in the “green” zone.