Enviornemntal, Organizational Audit and Strategic Planning of Mercedes Benz

5439 Words Jan 18th, 2011 22 Pages
1.1 P3

SWOT (S-Strengths, W-Weaknesses, O-Opportunities, T-Threats), is a useful analyzing tool to review a business’s strategy, position and its proposition which makes all aspects of its functions more measureable and quantifiable. It brings in more accountability due to which better implementations can be conducted on its planning strategies, competitor evaluation, marketing, product development and research reports. Six categories can be allotted to translating the analysis into actions, namely product, process, customer, distribution, finance & administration. Yet care should be taken that personal viewpoints do not hinder potential opportunities. This is because threats at often times also
…show more content…
1.3.4 Generic Competitive Strategies
The main differences in competitive strategies that firms employ hinge on 2 factors: 1) Whether the market target that the company caters to is broad or narrow 2) Whether the firm’s competitive advantage is linked to low cost or product differentiation

There are primarily 5 distinct competitive strategy approaches: * Low-Cost Provider Strategy – This approach aims at underpricing rivals by achieving lower costs than its competitors and appealing to a broad customer base * Broad-Differentiation Strategy - This strategy seeks to differentiate a company’s product from rivals by offering consumers with breakthrough or improved products, perhaps at a much lower cost and of better quality * Best-Cost Provider Strategy – The target in such a strategy is to offer customers more value for their money by providing them with comparably good quality products than those of its competitors at a reasonably lower cost * Focused (or Market Niche) Strategy – In focus strategy, the firm concentrates on particular market segments rather than serving an entire market with a single product or service – usually also at a lower cost than its competitors * Focused Strategy based on Differentiation –This approach employs the catering of customized products or services according to

Related Documents