United Cereal Laura Brill’s Eurobrand Challenge Essay

5314 Words Oct 28th, 2012 22 Pages
Principles of Management
Lecturers: Carsten Brodt/ Andrea Raab

United Cereal Lora Brill’s Eurobrand Challenge

4858318: Yan Gu 4841426: Zhaoxi Wang 4840554: Wenjiao Cao 4843927: Sanyog Yadov

4847300: Mengfan Liu 4848152: Ritu Pathak 4838304: Chuxian Wang 4836586: Yuwan Zhang

Content

I. The positioning of United Cereal (UC) ...................................................................... 3 a. c. a. c. a. The vision of United Cereal ............................................................................. 3 The implementation of “UC way” ................................................................... 5 The SWOT analysis of UC’s environment in Europe ..................................... 6 The
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b. Generic strategies analysis of UC

Judged from UC’s European strategy and organization, obviously UC has followed the focus strategy, specifically, differentiation focus originally but has a trend to cost focus, among Porter’s generic strategies. Porter’s generic strategy matrix highlights cost leadership, differentiation and focus as the three basic choices for firms (M. Pretorius, 2008). These three strategies are created by the combination of two dimensions: strategic advantage and strategic target. Strategic or competitive advantage is of two kinds- differentiation or lower cost. Strategic target or competitive scope can be in terms of geographic targets, customer segments served, and the range of products. A cost leadership strategy is to organize and manage business activities so that the lowest cost producer of a product (good or service) can be achieved within an industry. A differentiation strategy is based upon persuading customers that a product is superior in some way to that offered by competitors. In differentiation strategies, the emphasis is on creating value through uniqueness. Uniqueness can be achieved through service innovations, superior service, creative advertising, better services via 4

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