Strategic Management Harvard Case Solution & Analysis

Strategic Management Case Study Solution

The report illustrates the Competitive strategy under the light of porter’s Generic Strategies namely cost leadership, differentiation and Focus. These three broad strategies entails the different components that can be used by the organization in order to achieve the sustainability and competitive advantage to retain the market position and market share for a loge period of time.Under the cost leadership strategy, the company like Walmart attains cost leadership by effectively maintaining its supply chain cost.In doing so, it cost the cost in inventory management, warehousing distribution and transportation. Also, it integrates the supply chain functions backward and forward both, which offers the company the hold over the supply chain, thus leading it to control the cost and developing the “everyday low price” strategy to attract the maximum customer footfall leading to the development of high marker awareness, brand image and value.

On the other hand, the virgin airlines pursues the differentiation strategy.In doing so, it establish the mix of Pricing and service to make a whole differentiate business model.The company offers low fares in the market whoever, in order to differentiate itself, it offers the extended services like wifi, Comfortable seats, meal and other luxury services in the same prices.Also in order to delight the customers, the airlines also develops the high end customer service which adds to the differentiation strategy of the airline.

Perhaps, on analysis, it is identified that pursuing the broad differentiation strategy and cost leadership strategy is effective to maintain the sustainable competitive advantage in the market.The focus strategy is only fruitful for short term business and may posit the threat of sudden low profits due to changing market dynamics.

Introduction

Back in 1980, Michael porter, the academic scholar proposed the research findings of developing the generic strategies that a firm can use to establish the business, and that can offer the businesses a specific location and direction to take the business. These Generic strategies are divided under three domains:

  • Cost Leadership
  • Differentiation
  • Focus

Porter proposed the idea that every business needs to develop certain position and competency in market in order to differentiate itself from the competition.The difference can be in terms of rare resource, technology, pricing, product featuring, supply chain management, and efficiency/effectiveness.He also proposed that since with the passing time, the competition is being raised in the market, making the market stiffer and saturated, the firms needs to develop certain strategies namely generic strategies to sustain itself in the market and establish a high performing strategy that distinct the business from its competitors, developing a competitive advantage in the market.

The core objective of developing the generic strategies is to maintain or establish the competitive advantage in the market, which allows the firms to set the markets according to the business dynamics and also attract the maximum market share, customer flux along with the sustainability of operations in the long run. The competitive advantage can be anything that offers the business the value proposition, and distinction among the competitors. It can be the rare technology, highly skilled labor, Effective data management functions, financial resources, market development strategies or product featuring, which are rare, valuable, and cannot be imitated easily by the competitions. It is the competitive advantage that allows the business to develop a distinct image in the mind of the consumer that differentiates the business from other brands.

Competitive Advantage:

A competitive advantage is anything that makes the business better and establishes the core competency that distinguishes the business from other business and develop a clear positioning I the mind of the customer. It is something that cannot be imitated easily however cannot be sustained for a longer period of time with same uniformity or least improvements.

Porter explained the objective to develop the competitive advantage crucial for business.Since similar products and business models as are being developed in the market that has made the markets saturated and have bombarded the customer with array of brands, it is important to distinguish the business core competencies in the market is to develop a clear market positioning and placement in the mind of the consumers. This allows the businesses to acquire more market share and generate mores sales, with sustainable operations.

The competitive advantage is divided under three determinants (1) Benefit (2) Target market and (3) Competition.These three detainments are discussed below:

Benefit:

The first determinant of competitive advantage is Benefit. While developing the competitive advantage in the market, the business must decide on what benefit they will offer to the market so it would differentiate it from the competitors.These benefits can be something of true value to the customer that should be eventually improved and enhanced, leading towards development of market pro strategies in order to stay aware of the market trends. These benefits forms the competitive advantage for the business since it allows the business to incorporate value, market trends, customer demand, and behavior into the product/Service.

Strategic Management Harvard Case Solution & Analysis

 

 

Target Market:

While developing the competitive advantage, porter proposed that in order to regain the maximum market share and develop sustainable operations, the business needs to develop a focused target market strategy, in which they need to know who are the target market, what is the behavior, what is the economic growth Precursor and above all how the company will develop the demand for its product of service in the market.This outlines the development of strong precise and concrete market strategy that lead to the development of competitive advantage in the market.

Competition:

Lastly, in order to develop the strong market competitive advantage, the business needs to analyze the competitors’profiles not in terms of similar product offerings and service, but also in terms of strategy analysis and strategic placement of the product over the period of time...............

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