Furthermore, Target Corp. businesses becomes heavily reliant on technology investment to support multichannel efforts and transform information processes and computer systems more efficiently and run the business and remain competitive. However, it’s growth also depends on ability to build new stores in locations in fully developed market in favorable geographic locations. Another threat Target faces is that of substitutes. As mentioned before essentially every company’s goal is to generate the demand to which it will supply to, thus, because there are many other competitors offering better quality for higher prices or lower prices and
the corporate conjointly has the serious money muscle to take a position in its analysis and development which might additional enhance its line further as invest in selling. It conjointly contains a terribly sturdy international presence each in terms of production capacities further as market share.
Concentric diversification strategy is a growth strategy that involves expansion into related products or services that are clearly differentiated or distinct from the firm 's current business (Barnat, 2014). Firms diversify into related businesses when there is some kind of strategic fit between the two businesses. Strategic fit exists when businesses have sufficiently related activities in the value chain that offer competitive advantage of lower costs, economies of scale (combining activities into a larger scale operation), economies of scope (ability to eliminate costs by doing things together rather than independently) and transfer of managerial skills and expertise. This competitive advantage increases a business performance (Bae, Kwon, & Lee, 2008). The goal of related diversification is to achieve strategic fit.
THE TESCO‘S STRENGTHS The strengths of a company is required since the establishment of the company. The strengths is important, so that the company can attract more customers, maintaining profitability, and produce a good product or service. Tesco is a powerful retail brand globally, in the top 100 of the world’s most valued brands, slightly below Ikea and well above eBay It is known as a company that offers value for money, convenience, a wide range of products, and locally-sensitive management. Tesco has utilised innovative business methods in its rise, including the creation of stores like Tesco Metro and Tesco Express, which are small stores in local neighbourhoods to make shopping more convenient for the customers. Other strengths in their global operations include online shopping, joint ventures, such as in China, and local recruitment, including in senior management positions.
Furthermore, competitiveness describes the ability of a company to offer products and services that meet or exceed the quality standards that are set by the local or global markets at competitive price. To add on, the company should be able to compete with other firms and sustain stable in the market on the long run. Importance of competitiveness The importance of competiveness relies on the company to generate greater volume of revenue and take an advantage on their competitors. Moreover, a competitive firm gives a greater value for the firm 's shares. A competitive business reflects its ability to grow which makes it a good investment choice.
By employing the above strategies the firm will be assured of achieving profit growth and more cash flow growth that will ultimately lead to the high returns on the shareholders. The company has strategies that are focused towards portfolio transformations that look in its model of acquiring leading brands in the world. It has to combine this with superior innovations and productivity imporo9vements to have high operating margins thereby offer low prices to its clients. Corporate Strategy On the firms’ corporate strategy the firm has plans of making strategic alliances with other leading brands within the regions it has not diversified such as the Asian markets. There also a high need for the firm to diversify in the range of products where currently it made some steps towards the entry of the information and technology markets.
Nevertheless L'Oreal has a huge consumer market and big competitive advantage over its competitors, due to many factors,and in particular due to the high diversified portfolio of products, and their worldwide presence and coverage. L'Oreal implements global integration with local responsiveness. Company continues to focus on research and development, as well as on advertising and promotion in order to gain over
For that reason, one of the world’s leading retail organisation Zara particularly focus on their organisational resources in order to get the competitive advantage over their competitors. Some of the key organisational resources of Zara are demonstrated below: Market-oriented Strategy However, in the retail industry the competition is very high that is why the customer is considered as a king for them and they have to make them loyal as much as they can for the reason that they will not move to other brands quickly. Moreover, by focussing on customer‘s requirement and likings, reinforced by its operational approaches and Zara shows their assurance towards their precious clients. For that reason the customers of Zara‘s are quite loyal that help them to reach better position in the market (Finney, et al., 2008). Staff-Education It is found that the top officials of Zara are quite keen and focussing on customer service; therefore, the basic requirement to train their employees is one of their topmost importance.
Consumer-product companies with solid status in the consumer market may see advantages in expanding and venturing into the business market. One advantage of selling consumer products in both markets is the aspect of capitalizing on opportunities that are apparent in the business market rather than just the consumer market. This choice made by consumer-product companies to venture into dual markets is often prompted by the idea of increased sales. Hudd & Speh (2014) state that a maturing product line, a desire to diversify operations, or the strategic opportunity to profitably apply R&D or production strength in a rapidly growing business market are the main ideas behind moving into the business market in hopes of boosted sales. A larger range of consumers is served by dual marketers and so another advantage is that they prevent dependency on the restricted number of consumer customers if
INTRODUCTION Due to globalization, consumers have more opportunities than before, that’s why every firm needs to deliver valuable product or service for the market. In a competitive environment, attaining a position of competitive edge and enhancing the firms’ performance are two of the main objectives that every organization should struggle to achieve (Ismail, Rose, Abdullah, &Uli, 2010). In the new era, supply chain management is considering one of the main sources of achieving competitive advantage, which leads higher organizational performance because of its ability to generate value in each activity of supply chain. Tan, (2001) argued that SCM may be described as the value adding activities which are begins from the raw material extractor