However, if the acquisition is managed properly the transaction can dramatically alter the competitive landscape giving them a competitive advantage over their rivals. Lastly, effective acquisitions can increase growth in ways that would not be able to be completed organically. [1] Slaoui needs to manage the integration by addressing all constituents and aligning corporate cultures. Prior to acquisitions talks GSK made significant changes to their business model that will allow them to deliver long-term growth. The Discovery Performance Units (DPU’s) hase moved the company in the right direction which has reenergized integrative thinking.
MBA 667: Leaders on Leadership (Fall 2012) Book Review Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. By W. Chan Kim and Renee Mauborgne Blue Ocean Strategy is about creating new markets which make competition irreverent. Kim and Mauborgne present the argument that in order for a company to break-out from the competition and sustain success, they must redefine the boundaries of the market and create their own “blue ocean.” In this newly formed blue area without the “bloody” competition in the red ocean, the innovative company can now capture new demand and reap success. The authors have created a very clever metaphor which ensures the readers want to be in the nice, clean, shimmering, blue ocean vice the “bloody” red ocean. There are six principles of the blue ocean strategy: (1) Reconstruct market boundaries, (2) Focus on the big picture, not the numbers, (3) Reach beyond existing demand, (4) Get the strategic sequence right, (5) Overcome key organizational hurdles, and (6) Build execution into strategy.
1.0 INTRODUCTION Businesses strive to survive in the market place. Market boundaries exist in mature and competitive market but they could be reconstructed by a firm in order to create uncontested market space. To develop strategies that will allow a new business create an uncontested market place strategic move must be in place. Strategy development is a creative process that requires the business owner having a vision of what he wants the company to achieve in the short and long term. Most Industry falls under the group of Red Oceans.
The products will be served in a friendly manner and the atmosphere will be a serene one that will leave our customers feeling satisfied after their encounter with our company. This will cause our business to succeed and thrive throughout the years. Caffe Umbria’s ideology is to provide its target market with high quality but mid-priced coffee on the go and in bagged blends to make and serve at home. By providing a cheaper alternative to places like Starbucks and other name brand expensive coffee shops, Caffe Umbria must make many smart choices when it comes to planning pricing, packaging and distribution. Companies with smaller profit margins must create a larger following of loyal customers because they need to rely on the quantity of customers, not the markup, for their profits.
Starbucks was a coffee shop that allowed friends to come together over a cup of coffee and now it has expanded with Wi-Fi in stores, and online stores. Financially, if they continue to expand without having enough customer growth Starbucks could go into bankruptcy or
In order to ensure the respondents accurately represented the SFU student body, we attempted to choose participants who were diverse in gender, faculty, nationality and year of study. This proved to be highly beneficial to the discussion, as it stimulated the exploration of ideas and topics that we had initially overlooked. This exploratory research refined the areas of investigation most beneficial to Renaissance, particularly key factors that affect food and drink choices, as well as to gain ideas and insights into Renaissance’s current brand perception and loyalty. From here, we were able to generate hypotheses about the following categories: a) Coffee Consumption Habits - Students consume the most coffee during exam week and lecture break. b) Factors Influencing Purchase Decisions - Students feel that price is the single most important factor when deciding where to purchase food or beverages.
When someone says they are going to get a drink from Starbucks, without thinking, you automatically are filled with images of a high-end coffee shop and can maybe even smell the brewed coffee. Without even realizing it, every aspect of Starbucks has been carefully chosen to persuade customers to enter the store, and to buy their coffee (Ruzich 433). In this rhetorical analysis/commentary of Starbucks I will be going in depth on the authors article about Starbucks. Not only does Starbucks persuade a person to buy their coffee, but also the warm, cozy atmosphere makes a person feel at home so it gets them to stay in the coffee shop even longer. Purpose: Ruzich’s purpose in this article is to inform the reader of the reason why Starbucks has become such a sensation.
The strategy is to pursue differentiation and low-cost simultaneously. This will help increase demand and capture demand from new customers. The blue ocean strategy is important because it helps companies find ways to reconstruct market boundaries and gain new customers. Another approach opposite from the blue ocean strategy is the red ocean strategy, which involves only differentiation or low-cost, not both. The red ocean strategy is used in existing markets.
In Red Oceans Strategy, competitions are the core value and core strategy. Thus, one effective way to earn more market share is to increase sales costs or reduce profit. In red oceans, due to the market is over crowd, the profit and development prospect is not very well. 2. The authors allude to the fact that most companies borrow their strategic thinking from military models (see ‘Paradox of strategy’).
In today’s business world, there are many different strategies used to run a business effeivctilty. Most important is practicing good ethical behavior which could offer several benefits to a company. Ethical business practice gives the company a great reputation, loyal consumers, stakeholder, and employees. It creates positive effects on it bottom line. Starbuck Corporation is a leading coffee retailer with more than 18,000 stores in 62 countries and is considered one of the World Most Ethical companies according to Ethic sphere Institute for the 8th year in a row (website from Blackboard).Starbucks describes their corporate social responsibility as a way they conduct their business to produce social, environmental and economic benefits to the communities (Corporate Social Responsibility Annual Report).