According to Ghofar and Islam (2015), these activities both competitive advantages as well as core competencies are singular activities Etisalat can use to produce better products than its competitors. In this area the Group needs to acquire various economic tools at lower costs than its competitors, highly productive and efficient production materials, unique goods and services that cannot be duplicated or pirated by other companies at a cost friendly supply chain for making quick profits and shortchanging customers. Esty and Winston (2009), notes that corporate strategies are the firm’s overall way of achieving a competitive advantage by operating in different businesses simultaneously. The firm can adopt various methods to ensure maximum output. These methods include portfolio approach that puts the firm’s corporate headquarter into internal auditor’s role.
They have a large effect on profit, but there are many suppliers and possible substitutes so they are easily available. Leverage products should be bought at volume when the price is low. Improving knowledge of the markets, continually sourcing new products and suppliers, and target pricing and optimising order quantities are recommended for these items. Competitive bidding can also be applied, which targets short term contracts with suppliers. Based on the information given in the case study and Kraljic Portfolio Purchasing Model, archival storage services would be classified as a routine item since has low profit impact and low supply risk, and the marketing paper would be classified as a leverage item because it has high profit impact with low supply risk.
Which helps to maximize the customer value while minimizing the resource waste. This leads to the better understanding of customer requirements and values and focuses to increase the association. The overall comparison of value vs resources depicts that, in comparison of high customer value, resource wastage can be compared to nil. It’s a stereotype that lean organizations are suited best for specific kind of business, but it is not only a strategic or cost reduction program. It is more than that, the way of thinking and responding to the problems for an entire
3) Concentrated Marketing A concentrated marketing (or niche marketing) strategy means that a company would concentrate its marketing efforts towards a large share of a small segment or a niche market. This method is usually used by smaller companies with fewer competitors, or by new comers to get a foothold against aggressive more resourceful competitors, and then develop into broader competitors. It can also be used by some megamarketers as markets change, to develop niche products and grow sales. This method allows a firm to achieve a strong market position while staying effective by fine-tuning its products, prices, and programs to the needs of its defined segments, and efficient as it targets only aconsumers in the niche market it is addressing through different promotion channels. However, there is a high risk of targeting just one niche market, as the business might suffer greatly if a larger competitor decides to target the same segment using its great resources, or if a substitute product enters the market with a lower price then the company would suffer tremendously; that’s why companies usually tend to diversify their products and
Premium Pricing: A premium quality product or a service can be used to set its value artificially high in an attempt to encourage a favorable audience perception, something that will be the USP (Unique Selling Proposition) of our setup. Later, if the services or products begin to establish a reputation for quality, this is a great pricing strategy to implement. 13. Price Leadership: A point at which the practice or business becomes self-sufficient to be able to dictate prices within the marketplace. As such, it is an ideal goal to aim for and will work best for businesses operating in industries where competition is scarce.
Therefore, the final optimal network will choose key suppliers who have the lowest operational costs, without considering the quality failure cost from the defective components received from the suppliers. Thus, choices made solely on production cost may sacrifice quality and lead to additional quality failure costs or corrective action costs in the next stages of the supply chain. Fayard et al. (2012) contributed to an understanding of the ability to manage inter-organizational quality cost that gives organizations an advantage over their competition. Moreover, Castillo-Villar et al.
Primark’s products are branded as “Atmosphere” this unique selling point (USP) will distinguish there product from those of its competitors. This is beneficial as it implies that Primark can have a higher brand loyalty and recognition in which would give them the ability to charge a higher price in recognition of the unique feature. In addition, it can create a barrier to entry making it difficult for new business to compete. Price is another component within the marketing mix; this defines the amount of money that is paid for a good by the customer. Primark follows a pricing strategy in order to meet marketing objectives.
Examine the potential synergies among the value chains of different product lines or business units: Each value element, such as advertising or manufacturing, has an inherent economy of scale in which activities are conducted at their lowest possible cost per unit of output. If a particular product is not being produced at a high enough level to reach economies of scale in distribution, another product could be used to share the same distribution channel. For an example of economies of scope, which result when the value chains of two separates products or services share activities, such as the same marketing channels or manufacturing facilities. The cost of join production of multiple products can be lower than the cost of separate
It encompasses a range of activities starting with the acquisition of raw materials, managing the product creation process, distribution and logistics, marketing and sales, customer service and human resource management. While marketing goals reveal a business’s intentions, marketing strategy provides the roadmap for achieving these goals. Types of marketing strategies According to Michael Porter, marketing strategies can be divided into overall cost leadership, differentiation and focus. • With overall cost leadership, the business focuses on minimizing production and distribution costs and sells at a price lower than the competition to increase its market share. This strategy, however, has it flaws as another competitor might enter with an even lower price.
Through this, the firm may apply and compare its technological know-how to an advantage. It aims to raise the market value of product thus gain a more profit. Secondly, the horizontal diversification which means services or products those are in a sense not related technologically to certain products. This kind of diversification is more efficient is the current clients who is loyal to the existing services or products and if the new products are adequately promoted and well-priced. However, the newest products are marketed in the same way that may cause instability because the strategy raises the new products’ dependence on an existing