The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.
There will also be new competitions in the market, so company are forced to do promotions so that people won’t change to buy other brands. At the maturity stage, product’s sales and profit reach the highest and may start going down. This is when company will keep doing more advertisement and promotions to defend market share. Company may even modify product to find new market so that they can stay in the maturity stage for a longer time. There will be less but stable competitors in the market.
These are explained below. B2B’s and B2C’s are both communications directed to people. Whether this be towards a business or to a customer, they are trying to market their products and services to their desired target audience. Another similarity is B2B’s and B2C’S both need to build a brand. If a brand has a good reputation, customers and businesses, are more likely to purchase that brand.
There is a concession to this argument that a more customer centric employee will be able to better serve the customer in a shorter time frame and actually offset the cost of the training by being able to serve more customers in a shorter time period. If this is the case for EMC, then the customer centric business model will generate a good ROI over the long run despite their complex product offering. 3. How is the way customers buy in the age of social media changing? Do you think that “high tech” can replace “high touch”?
(P1.3) Once the business strategy is formed, there are different techniques in developing the strategic plans of the business using various tools by the organization. These techniques show the strengths and weaknesses of the organization and as well as their opportunities and threats that are possible to the business in order to form an effective developed strategic plan during the process of operation. In this case, Nordstrom uses these types of tool in developing their strategic plans which are the BCG matrix and SOAR analysis. BCG matrix is the matrix which determines the level industry relative share of the industry and the business with the help of four dimensions. Strategic business plans are set by considering the growth rate of the industry and current situation of the business.
A company practicing it aims at meeting the consumer expectations and needs better than its competitors. Companies that practice the concept have a customer focus apply competitor intelligence, and inter-functional coordination. Societal orientation focuses on three aspects. It delivers superior value as it aims at meeting the customers’ needs, the company’s objectives and the human welfare. Societal philosophy has a greater advantage over other philosophies as it creates a long-term relationship (Jayachandran,
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.
Every business is continually working towards growing its profits. Through profit maximization, businesses can find the best price levels to achieve its profitability goals. This method allows companies to set different product at prices that return maximum revenue and profitability. Profit maximizing prices are important because they have a positive long-run effect on profit, rather than markdowns, which create excitement but inevitably have a negative long term profit effect. In order to find this equilibrium price, a company must determine its consumer’s price elasticity or price sensitivity (Chapter 14 slides).
Growing A Company Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing. Introduction When companies are experiencing success, they want to grow so they can continue succeeding. The larger they get, the more profit they will be able to achieve. Sometimes, this is hard to do for just the company alone, and they may need some help.
This could help Harrah in retaining new customers (or from competitors), increasing frequency of visits, retaining them for a longer period. It can be concluded that evaluating customer’s worth can help Harrah in achieving competitive advantage, high recurring revenues, and bringing sustainable profits. How does Harrah's integrate the various elements of its marketing strategy to deliver more than the results of Database Marketing? The marketing strategy of Harrah comprises of various customer-centric elements and focussed on below key phases: New Business Program: for converting new Total Gold members into loyal customers by making more effective investment decisions using predicted customer worth Loyalty Program: it was designed to identify customers who gave small share (to Harrah) of their total spending. The focus was to make Harrah’s as the first choice of customers and subsequently increasing the frequency of visits Retention Program: objective of this program was to revitalize customers having erratic visitation patterns or have moved to the