Sainsbury’s products are considered the highest quality of the “Big Four” and this allows for Sainsbury’s to charge a more premium price for their goods, Sainsbury’s are also looking to open 1000 extra micro-stores, these will be merely for convenience and focusing on selling fresh produce this is something Tesco is not doing at the minute so Sainsbury’s has instantly got competitive advantage (Downie, R : 2015). Another key to Tesco’s competive advantage is there actual brand name and that their brand is trusted by consumers. When a brand is trusted it attracts the customers back and even though Tesco’s brand is very trustworthy it’s no match for Morrison’s. Morrison’s have several food manufacturing facilities, they are Tesco’s biggest competitors when it comes to own branding (www.ukessays.com
As a result, this reflects a better picture to the bank. Furthermore, using the level production the stress level for the employees as well as the company can be decreased as everything will most likely go as planned. And in the end, the probability of producing damaged goods has been reduced. With all the productions and deliveries being as scheduled, the likeliness of their customers paying them in the 30-days frame should increase, and as a result improve their financial position. Looking at the exhibits provided by the case, Toy World´s would gain more profit with level production, $532,000, instead of the $351,000 profit with the seasonal production – which indeed represents an important increase.
So, this should also be the prime focus. Brand can be established on different basis. Maybe quality or status. Therefore, companies use price-skimming strategies to reach their target markets and successfully establish their brands. But quality also matters.
machine is the best alternative for BCB future production and expansion because of the several reasons • Cheapest of all • Experienced and a reputed company in the CNC field • Andrews CNC was not as good bale machine and also termed problematic in the past . it could be a risk . • Maintenance is cheaper and faster in the bale case. this can lead to a better productions and handling of problems Learning outcome about the industrial buying and selling 1. Decision making at the right time is the key to success in the business markets Bcb manager Paul Flynn knew about the necessity for buying a new machine back in 2002.
Question B First movers and market followers First movers – “A form of competitive advantage that a company earns by being the first to enter a specific market or industry” (Investopedia, 2015). Being a first mover allows a company to achieve more brand recognition and customer loyalty, however there is a high risk of being a first mover, since the market has not been tested there is no way of knowing how the consumer will react to the product or services provided by the company. With the high risk there is also high gain, since the organization provides a unique product it can capture a large consumer base if it’s well received. Market followers – “A company that allows other more dominant firms to lead the way within the marketplace that
For any business, there are some important things: • Market information Through Market data one can know the costs of diverse things in the business sector, and additionally the supply and request circumstance. Information about the markets can be obtained from different sources, varieties and formats, as well as the sources and varieties that have to be obtained to make the business
When arriving in a new market (US & Europe), their main aim was to broaden their market segment by selling reliable and low-end smartphones for a much more affordable price than its competitors. This is what we call a market penetration strategy and it is the strategy Huawei used in Africa, Latin America and the Middle East (prior to entering the US & European markets) where competition is less fierce. By using pricing to build share in its major markets, Huawei has inspired trust in its clients and gives off an image of reliability on behalf of its products. By comparison, Apple and Samsung focus most of their attention on reaching high profit margins through the sales of their high-end
On the other hand, we can say it is not the strategy that has been with the firm over a long period of time, which determines the existence of the sustainable competitive advantage, but it is the inability of the other present and the potential competitor firm to duplicate the strategy because of which there is existence of sustainable competitive advantage. Sustainable competitive advantage in Retail industry: 1. CUSTOMER ORIENTATION STRATEGY: Gaining customer loyalty is one of the ways to sustain competitive advantage. This can be done through by providing good quality of products at lower cost. Some other ways to build customer loyalty to have a
Essence is what the brand is and its innate quality that doesn’t change. IMPORTANCE OF BRANDS: 1) A good and strong brand can have price premium and therefore earn high margins by charging extra. 2) Brands are essential to attract new customers which is important for any business. 3) Brands also are an obstacle to new coming brands as the loyal customers tend to stick to a trusted brand rather than switch over to some new brand. 4) Brands also protect the company during economy downturns.