Business Strategy Chapter 8 Essay
( 2nd half continued)
EVALUATING MARKET FOCUS AS A WAY TO COMPETITIVE ADVANTAGE
* This is a generic strategy that applices a differentiation strategy approach, or a low cost strategy approach, or a combination- and does so solely in narrow ( or focused) market niche rather than trying to do so across the broader market. The narrow focus may ne geographically defined or defined by product type features, or target customer type, or some comboination of these.
* Allows to compete on the basis of low cost, differnetialtion, and rapid response against much larger businesses with greater reosources.
* Learn target customers and their need to fulfill
* Rapid response- small firm builds …show more content…
Emphasize brand recognition, product differentiation, and financial resources to support both heavy marketing expenses and the effect of price competition on cash flow can be key strengths. More competitiors now that market has proved itself as successful.
For success, business strategists rewuire these features:
1. The ability to establish strong brand recognition trough promotional resource and skill sthat increase selective demand.
2. The ability and resources to scale up to meet increasing demand, which may involve production facilitits, service capabilityes, and the training and logistics associated with that capacity.
3. Strong product design skills to be able to adapt products and services to scales oprations and emerging market niches.
4. Ability to differentiate the firm’s products from competitiors entering the market
5. R&D resources and skills to create product variations and advantages
6. Ability to build repeat buying form establish customers and attract new customers
7. Strong capabilities in sales and marketing.
Competitive advantages and strategic choices in mature industry environments
Rate of growth declines
Competition for market share becomes more intence as firms in industry are forced to achieve sales growth at one another’s expense.
Firms sell to increasingly experienced, repeat buyers who are now making…