Marketing Strategy
Chapter 4: Evaluating a Company’s Resources and Competitive Position
Question 1. How Well is the Company’s Present Strategy Working?
In evaluating how well a company’s present strategy is working, a manager has to start with what the strategy is; A low-cost leader strategy, A broad differentiation strategy, A best-cost provider strategy, A focused, or market-niche, strategy based on lower cost, A focused, or market-niche, strategy based on differentiation.
While there’s merit in evaluating the strategy from a qualitative standpoint (its completeness, internal consistency, rationale, and relevance), the best quantitative evidence of how well a company’s strategy is working comes from its result. The stronger a company’s current overall performance, the less likely the need for radical changes in strategy.The weaker a company’s financial performance and market standing, the more its current strategy must be questioned.
Organizations succeed in a competitive marketplace over the long run because they can do certain things their customers value better than their competitors e.g offering better quality products with cheaper prices.
First we must understand what is the current strategy the company is implementing now; 1. A low-cost leader strategy: striving to be the overall low-cost provider of a product or service that appeals to a broad range of customers ie;focus on being the lowest cost provider e.g Lidyl, and tal- Lira.
2. A broad differentiation strategy: seeking to differentiate the company’s product offerings from rivals’ in ways that will appeal to a broad range of buyers i.e they want to differentiate from their rivals ie by offering something different eg, Apple and Rolex as a prestige brand, Dr. Pepper with a different taste, Wal-Mart with value and more for your money. 3. A best-cost provider strategy: giving customers more value for the money by emphasizing both low cost and upscale difference, the goal being to keep costs and
Question 1. How Well is the Company’s Present Strategy Working?
In evaluating how well a company’s present strategy is working, a manager has to start with what the strategy is; A low-cost leader strategy, A broad differentiation strategy, A best-cost provider strategy, A focused, or market-niche, strategy based on lower cost, A focused, or market-niche, strategy based on differentiation.
While there’s merit in evaluating the strategy from a qualitative standpoint (its completeness, internal consistency, rationale, and relevance), the best quantitative evidence of how well a company’s strategy is working comes from its result. The stronger a company’s current overall performance, the less likely the need for radical changes in strategy.The weaker a company’s financial performance and market standing, the more its current strategy must be questioned.
Organizations succeed in a competitive marketplace over the long run because they can do certain things their customers value better than their competitors e.g offering better quality products with cheaper prices.
First we must understand what is the current strategy the company is implementing now; 1. A low-cost leader strategy: striving to be the overall low-cost provider of a product or service that appeals to a broad range of customers ie;focus on being the lowest cost provider e.g Lidyl, and tal- Lira.
2. A broad differentiation strategy: seeking to differentiate the company’s product offerings from rivals’ in ways that will appeal to a broad range of buyers i.e they want to differentiate from their rivals ie by offering something different eg, Apple and Rolex as a prestige brand, Dr. Pepper with a different taste, Wal-Mart with value and more for your money. 3. A best-cost provider strategy: giving customers more value for the money by emphasizing both low cost and upscale difference, the goal being to keep costs and