In the Personal Stereo Industry, the interplay between the pioneering companies, Saehan and Pontis and the entry of Apple illustrate that first-mover advantages are in fact futile, while factors such as product innovation, distribution capacity and access to international markets are the true contributors in developing economic advantages. Similarly, thorough coverage of the VCR/DVD/Blu-Ray industry demonstrates that cheaper production costs and product suitability to consumers are the main factors that allowed JVC to attain economies of scale and thus competitive advantages. 2. Introduction Proponents of New Trade Theory (“NTT”) suggest that all competitive advantages are deeply rooted in first-mover advantages. This essay will look to evaluate this statement and present a contrasting view through the analysis of the personal stereo and video recorder industries.
The important business competitive strategies are lower cost strategy and differentiation strategy. The lower cost strategy helps an organization compete efficiently in the industry by designing, producing and marketing a similar product from its rivals but at a lower cost. Differentiation strategy helps an organization develop and market a different product from its rivals. Our team understands these two competitive strategies because we can relate with always being different to stand out or try to purchase the same products and services at a lower cost instead at a higher cost (Wheelen & Hunger, 2014). To create value and sustained competitive advantage through business strategy, organization must be able to design, produce, and
They were able to apply the core competencies of efficient and effective logistics also known as service, selection, savings and satisfaction from Circuit City to CarMax. Based on the VRIO framework, Circuit City had a competitive advantage which they applied to CarMax strategy. Their VRIO framework was based on efficient and effective logistics along with the 4w business model of service, selection, savings, and satisfaction which was valuable, rare, and difficult to imitate and organized to capture. By maintaining the same core competencies of Circuit City, CarMax has become the leading used car company with Fortune 500 status. 2.
• A differentiator gains a competitive advantage because it has the ability to satisfy customers’ needs in a way that its competitors cannot, which allows it to charge a premium price for its product. • Premium prices → increased revenue → superior profitability • A differentiator invests its resources to gain a competitive advantage from superior innovation, excellent quality, and responsiveness to customer needs • A product’s appeal to customers’ psychological desires is a source of differentiation. ▫ Example? 13 Differentiation • Generally, a differentiator chooses to divide its market into many segments and offer different products in each segment • A differentiated company concentrates on developing distinctive competencies in the functions that provide competitive advantage ▫ These are still expensive! • A differentiator must control its cost structure to ensure the price of its products does not exceed the price customers are willing to pay for them • When differentiation stems from the design or physical features of the product, differentiators are at great risk of being imitated ▫ Example?
Production orientation is a business orientation who believes in reduction costs through mass production which will reduce costs and maximise profits. Sales orientation is that orientation of company's who's thinking to the customer's needs and involving strategy: market and marketing, research, product development and promotion strategy. Market orientation mean market research to find out what customer's think about product and which is the importance of that product for customers. Societal Market is that balance to determine the needs, wants and interest of a target market to deliver the satisfaction and competitors where the society's well-being Sainsbury’s
9/15/2013 • • • Roger re: Blue Nile case study Dr. James Bronson 800 W. Main Street Whitewater, WI 53190 Dr. Bronson, Following are my theories and conclusions to the case study of the Blue Nile Corporation. What is Blue Nile’s business model? Blue Nile’s business model is built on creating profit in three key areas: • Online presence – by operating only with an online presence, Blue Nile saves a significant amount of money over traditional brick and mortar stores. Most of the company’s earliest competitors were all conventional brick and mortar, and by eliminating the costs associated with real estate, the company was able to profit from that strategy. • Creative partnerships – by signing exclusive contracts with their suppliers that allows the suppliers to carry most of the financial burden associated with Blue Nile’s customer transactions, the company is able to contribute to their profitability.
4. How do the three communication technique pillars support the Duster SUV’s publicity campaign? Are there any other techniques that may be added? (Word Count: 51) • Reputation – Helps identify the car as durable and low maintenance • Reliability – Past success track record helps gain customer confidence • Rightfulness –low pricings attracts those customers, who couldn't afford SUV in the past Buying
It doesn’t appear that there is many other upscale specialty food stores in the areas, Kudler would have to look in other regions. Kudler Fine Foods will need to invest more time in researching what products or ideas will make the company successful compared to other specialty food stores outside of the country. Conclusion Kudler Fine Foods has shown it can be successful. Business has been going and appears to be doing well. Marketing is the most important key to business success.
Grocery stores are in competition with smaller markets like Kudlers and Whole Foods. If the brand name grocery stores like Ralphs and Vons did not offer organic and specialty items, the market structure of Kudler Fine Foods would differ. This market structure positively affected Kudler because there was no barrier to entrance within the quality foods market. What negatively affects the company with this market structure is that they are compared to big companies who are able to supply some of these rare items at a more competitive price. One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base.
MULTINATIONAL CORPORATIONS by Stopford * Assumption: MNCs completely free to move across boundaries * Partially true, some MNCs are “locked” in the specific place due to related assets or specialized infrastructure – e.g. Silicon Valley * MNCs may be dependent upon the skills of specialized teams of local workers – e.g. Volkswagen in Brazilian innovation center * Assumption: MNCs are creatures of their home countries * Not always do MNCs put national interests above all else – e.g. Japanese MNCs protecting lower-cost international assets at the expense of local ones * MNCs place higher priority on the innovation process - regardless of where that process is centered – e.g. Tokyo is home to IBM’s personal computers * MNCs are becoming stateless – e.g.