For example, introduce more independent films with lower cost to different target audience. The new venture will allow independent production studios to supply their new films directly to theater. This will help the theaters drive the prices down. If this succeeds, it will be a breakthrough for the industry, as this a way to cut out the middle man and streamline the process by which films make it onto the big screen. In addition, lower ticket costs for movies after a certain time period from release date to combat DVD competition also an opportunity to this industry.
This is because by using all of the four strategies, perhaps the company can earn many profit and can sustain in market for a longer time. As have been mentioned before, it is advisable for the some company to concentre only on one competitive strategy to ensure that they can stay in the industry, but the fact is, it is flexible and subjective as the company can change it according to the situation of the market and it ‘s own rival. Firstly, in order to assist my Malaysian business to become more competitive and can earn more profit in the market it is recommended for them to proceed with the differentiation leadership and focus strategies. As both of these strategy could help the company to produce or offer a product or service that meet the demand of the customer or user. In addition, from both of these strategy the company can differentiate their own products or services to become more unique or as a completion to the feature that is lack on its own competitor products or services.
Traditionally, price differentiates all products in the market. If the firm is unable to use price as the differentiator for its product, then the firm has to find other means of differentiation. Intense competition has left firms with no other alternatives, but to innovate, in order to stay in business and obtaining competitive advantage. (Westland, 2008) Freeman and Soete (1997) suggest that firms can turn to alternative options or strategies, which help firms to innovate and survive with the changing world science and technology. These strategies involve a variety of different combinations of using resources, scientific and technical skills; forming alliances; licensing innovations; attempts technology and market forecasting; and attempts to develop a variety of new products and processes on their own.
Focus: This strategy rests on the choice of a narrow competitive scope within an industry. The focus strategy has two components. (a) In cost focus, a firm seeks a cost advantage in niche market, (b) In differentiation focus; a firm seeks differentiation in its target segment. Examples are car manufacturers like Aston Martin, Rolls Royce, and Bentley. These companies target a niche market and manufacture the cars according to the customers required specifications.
Competitive strategy is defined by Porter (1980) as a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals. An effective corporate strategy will allow a company to gain a competitive advantage over its competitors. The most common competitive strategies as stated by Porter (1980) are 1) Overall Cost Leadership 2) Differentiation and 3) Focus. The one most applicable to State Street would be differentiation. Differentiation is defined by Porter (1980) as creating something that is perceived industrywide as being unique.
It is also crucial to probe the status of product costs and its attractiveness (Porter 1996; Nguyen 2013). An analysis of Michael Porter’s five competitive forces will be related to each business-level strategy can help us determine which business-level strategy to use. Starting with the five competitive forces, each will be recognized in relation to the advantages and disadvantages of the generic strategies and continues on with a defensive or offensive approach (Porter 1996; Nguyen
Competitive advantage is when two or more firms compete within the same markets, one firm possess a competitive advantage over its rival when it earns (or has potential to earn) a persistently higher rate of profit. There are three types of competitive advantage. a) Cost leadership strategy occurs when a firm a delivers the same services as its rivals but at a lower price. b) The differentiation strategy occurs when a firm delivers greater services for the same price of its rivals. c) Focus strategy is a focused approach requires the firm to concentrate along one specific segment either a cost leadership or a specialization strategy.
Understanding Business Strategies and Corporate Strategies. In every business, whether it is big or small, there will be two strategies that must be implemented at one stage of its existence in the business world. These strategies are known as Business and Corporate Strategies. The Business Strategy is made up of completely different things compared to the Corporate Strategy. A small business working or producing in a single industry must develop a competitive advantage if it is to be profitable you can gain competitive advantage by outperforming your competition in some aspect of business to produce your goods or services at a lower cost.
By such a move, the mall management can assume that at least few people will buy other things on the way to the movie theatre. The multiplex offers multiple ways to book tickets. One can book the tickets online, through a regular ticket counter and a 'quick ticket' vending machine. By ticket counter is an