Competitive Advantage and Long-term Vision As the Allstar brand continues to be one of the leading Pharmaceutical companies who manufactures quality over the counter (OTC) cold and allergy medicine, our long-term vision is to build and gain a competitive advantage over the top competitor in the business marketplace. By gaining and maintaing a great competitive advantage, this will enable Allround to increase their market share and profitability. One way the company plans on reaching these long-term goals is by investing more in marketing. Focusing on increasing both the direct and indirect sale force. The new merchandisers will provide special support to retailers for their in-store activities, such as shelf location, pricing, and compliance
This is to outline the strategy deployed for the period 0-3 for Allround Management. The primary objectives of the company is to emerge as a leader in the Pharmaceutical industry by providing quality product with highest net income, highest stock prices, compromising the major share of the wallet and being leader of the highest manufacturer sales. From the last quarter, the brand is struggling with declining market share due to a steep increase in the competition & mixed consumer perceptions. A brief snapshot of the developments from Period 0-3 is tabulated below. Exhibit 1 shows the period wise net income growth: Period 0 Period 1 Period 2 Period 3 Net Income $67.2 Million $81.8 Million $94.0 Million $94.2 Million Manufacturer sales $355.3
Focused Cost Leadership With the price that American Apparel has, it targets the young and more well to do South Koreans. Being part of a niche group makes an individual feel more privileged, and would not mind spending more. By doing so, it will also help to build the brand loyalty, and consumers will purchase from them because of their need and desire. 2. Focused Differentiation By focusing on simple basics and key wardrobe essentials, American Apparel can still earn profits despite the ageing population and the homogeneous nation.
Their target market are mostly for the young ones, thus, this is why they tend to build their marketing tactics and brand positioning accordingly to the taste, needs and demand of the younger population. Their brand positioning is all about offering quality and reasonable price, yet prepared competently, as well as an experience that is kind, welcoming, and appropriate. At Arby’s, they take pride on offering both quick-service speed and fast-casual care, which are mostly liked by the younger
Substitute compliments with Amazon continue to address the strong force of substitutes which could threaten the performance of e-commerce. The customers see that it is easier to transfer to other retailers because of low cost switching. The strategic in the company long-term success in definitely in online retail. The low cost and high availability will increase the importance against the company. Future competitors can affect Amazons current customers, but new competitors would have to have a better brand such as in electronics.
Re-branding strategy to drive up customer demands (Avon SWOT, n.d.) There are many opportunities for re-branding that Avon could use to its advantage. In the past, Avon has tried to establish themselves as an upscale brand, but their efforts failed because marketers discounted products in order to sell them, and luxury products and discounting, as we already know, do not go well together (Avon: The rise and fall, n.d.). Even though this particular strategy has failed, there are many new opportunities for Avon to rebrand in order to increase demand, especially regarding rebranding as an upscale brand. Threats Strong competition Avon faces a strong competition from brands such as Oriflame, Revlon, Mary Kay, Loreal and many other drugstore and local brands who are in the same
The store brands typically cost 25% less and hence enjoying increasing demand. • The reliance on National brands like Kraft, Kellogg, etc.is decreasing. • However, all the retailers have to focus on Supplier relations because they need to watch out for the situation in which suppliers start integrating among themselves and increase their leverage over retailers. • Whole Foods are known to focus on local suppliers and for maintaining health relationships with all their suppliers, which greatly enhances their operational efficiency. Industry
Through this model, investors have an opportunity to evaluate the market position of the company through is effective and strong performance. Strengths Globally recognized – Wal-Mart has been in the retail business since the year 1962, and most of its efforts are dedicated to ensuring that it provides quality products to their customer and this has made them be a global brand. As a result, the strong market position of the company is its main strength. Competence in technology – Wal-Mart has effectively and efficiently managed to integrate technology in most of its operations. Competence in information system has enabled the company to establish a successful supply chain and logistics thus, saving a significant amount of cost to manage its inventory levels, sales and other crucial information and data.
During the past decade, Wal-Mart, Kmart and Target three retail giants generate a combined sale of $123 billion (External Analysis Wal-Mart 2015). The success of the retail industry contributes largely to the advancements of science and technology and reduced costs. In the future, the success of Wal-Mart still relies on consumers’ concerns for value shopping and saving money. The company should pay close attention to the needs of customers and provide high-value and low-price products for consumers. Industry environment analysis includes five aspects: threat of new entrants, power of suppliers, inter-firm rivalry, power of buyers and threat of substitutes.