BCG Matrix is used to analyze the Business Portfolio. Sarwana & Sohzsihm portfolio consist of 7 brands under which 27 different products come. Therefore this is a helpful tool to analyze their diversified portfolio. English Prickly Heat Cream and English Neem Soap are star products as they have a huge market share and high expected growth rate. The main reason is long hot weather duration and heat waves that Pakistan is currently facing and expected to face in future.
Prickly heat cream is highly effective in relieving itching, prickly heat and skin irritation from hot weather and Neem soap is highly effective against itchiness, dryness and bacteria. English Antilice Shampoo is cash cow for Sarwana & Sohzsihm. They claimed that their
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by focusing on their primary line of business (FMCG).
Competitive Strategy
Competitive Strategy defines how a company will compete in its business. As Sarwana & Sohzsihm is involved in multiple categories they have different competitive strategies for different products but not for all.
Product Advantage
English Antibacterial Toothpaste Differentiated Product
Prickly Heat Cream Differentiated Product
Al Asal Honey Unique Packaging
Soda White Toothpaste Differentiated Product
Most of their products are facing intense competition from competitors and some products are similar to the product that they offer.
Is these competitive advantage Sustainable?
No, these competitive advantages are not sustainable. As these products comes under FMCG sector.
FMCG caters a big market, thus chances of higher profits; therefore, in their industry new entrants consistently enter. New entrants are not small group with limited finances but they are big companies with a huge pool of finance (e.g. Sensodyne (launched in Pakistan by Gsk).
Customers have great bargaining power due to the existence of different brands in each category. Competition is intensive as every company tries to achieve and maintain greater market
What company did you select? Publix Supermarket What are some of their various product offerings? Give a couple of specific examples. The company offers wide variety of products like bakery, baby products, beauty and personal care, beer, and wine, groceries, they also have online shopping and delivery also their pharmacy to mention some.
During the summer of 2013, Hockley Valley Brewing Co a microbrewery located in Ontario, was in the growth stage of its product life cycle as it was operating at 50% capacity leaving room for growth (pg 3). Growth is the key stage for launching a product's position in a market, increasing sales, and profit margins. Sales from a summer festival in Orangeville were surprisingly very high according to the company founder and operations manager. The high sales showed a strong demand for light beers, when the standard bulk of sales are in dark beers. With solid competition from other well established breweries it would be very competitive for Hockley to introduce a lighter beer into the market.
Publix and Walmart are two well known retail companies that hold great and horrendous job standards. When you talk about a multi-million-dollar corporation that has almost any and everything that a consumer could ask for in one retail store the first place that comes to mind would natural be Wal-Mart. Wal-Mart strives in customers first policy. Constantly making sure that whatever a customer wants or needs it can be accomplished. Wal-Mart also strives and lives on the motto of “Every day Low Prices.”
• Rivals face high exit barriers Very High Potential Entrant Pressure • High entry barriers • Strong product differentiation • Menus change constantly with
It can be said that by means of organisation’s competitive strategy, it can achieve an upper hand in the business market over its rivals. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. An efficient strategy can help an organisation to achieve an upper hand through commitment to its strategic objectives and the capacity to significantly expand execution and profitability (Bartlett & Ghoshal,
Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our
SWOT Analysis Before we implemented our opioid addiction and rehabilitation service, it was important for us to examine what obstacles we might face and need to overcome as well as what we might be able use in our favor to help with our service. We performed a SWOT analysis to help identify the external opportunities and threats that were present as well as our internal strengths and weaknesses so that we might more efficiently jumpstart our service. External SWOT Analysis
To do this it needs to have a competitive advantage over its its rivals. A competitive advantage is something a company does better than its rivals that gives it an advantage over its rival. Porter (1988) states that a firm performs many activities that can contribute to a firms relative cost position and create a basis for differentiation which can create a cost advantage that gives a firm a competitive advantage over its competitors. A company’s competitive advantage and competitive strategy are both interrelated. 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.
Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment
Competitive strategy is a suit of methods and action sequence deliberately planned and put into place by companies in the face of market competition. This seems to be a clear way of keeping their market shares, expanding sales and managing the product lines to deliver desired results. The corporate world often needs some sorts of solid strategies considering the trends of the market competition. Beyond the issues of quality and distribution, companies often need to plan ahead and protect their market share in the sale.
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.
According to Pearce and Robinson (1997), “strategy is the overall plan for deploying resources to establish a favorable position it comes from the Greek word “Strategos” meaning to lead (agein) an army(stratos) into war. It is a course of action, including the specification of resources required, to achieve a specific objective.” ‘A strategy means making clear-cut choices about how to compete.’ – Jack Welch (Former CEO, General Electric). Volberda et al (2011), writes a strategy is an integrated and coordinated set of commitments and actions designed to develop and exploit core competencies and gain a competitive advantage.
The last element that helps these small businesses to continue in the market is the local rivals. Local rivals push each other to lower costs, improve quality and service, and generate new products and processes. Porter claims that domestic rivalry and the search for competitive advantage within a nation can help offer organizations with bases for accomplishing such advantage on a more global scale. For example Juhayna has strategy which is dedicated to providing high-quality, healthy, and safe products to its consumers. Juhayna has structure.
• Builds upon customer values and traditions Amul has understood that Indian values and traditions should be the top priority in marketing the product and hence it mainly focusses on adding culture to the product. • Largest chain of distributers and retailers in India Amul is known to be the largest FMCG in India. With a network of 2.8 million dairy farmers, 3500 distributers and 5 lakh retailers, it is one of the biggest business house in
Maxis reputation has been built around their quality network and superior customer service. Due to high standards and expectations that come with the Maxis brand it is not without reason that customers are more demanding of Maxis. As a result, Maxis always think that their business on being the customer 's first choice. Capital requirement usually build up a firm which is the high capability to compete in the industry. However, telecommunication is a high competitive industry in order to gain large market share.