Professional Documents
Culture Documents
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Involves a deliberate choice of activities that delivers unique
value to the customer.
h Attract customers
h Withstand competitive pressure
h Strengthen firm·s market position
§he objective of a competitive strategy is to generate a
competitive advantage, increase the loyalty of customers and
beat competitors
Self-evaluation
ompetitor analysis
Kelps to measure the effectiveness of the organizational strategy
by conducting SWO§ analysis
an be evaluated against:
h Suitability
h Feasibility
h Acceptability
Suitability deals with the overall rationale of the strategy.
Feasibility is concerned with whether the resources required to
implement the strategy are available, can be developed or
obtained.
Resources include :
h Funding,
h Ôeople,
h §ime
h Information.
Acceptability is concerned with the expectations of the
identified stakeholders with the expected performance
outcomes, which can be return, risk and stakeholder reactions.
But every champion has areas where he·s weak, often precisely
because he·s invested so heavily in his core strengths.
e.g. Ôalm
By gripping an opponent early, you may succeed in pre-empting
competition: securing victory, in essence, by making it unnecessary
to fight.
You can also build relationships with current or future rivals that
limit their room for manoeuvre or allow you to benefit at their
expense.
e.g. ebay
As a judo strategist, the last thing you want is to get locked into a
tit-for-tat struggle.
Matching an opponent·s move makes sense in certainsituations:
when you can match for example, or in cases where you can easily
neutralise your opponent·s advantage and recapture the lead.
But if matching means getting dragged into a war of attrition or a
pure trial of strength, then resist the temptation to fight titfor- tat
and strike back on your own terms instead.
e.g. ebay
Withpush when pulled, you go one step further by using your
opponent·s force or momentum to your advantage.
e.g. Drypers
No matter how skilled you are as a strategist, you are unlikely to
win every skirmish.
And by exploiting these barriers, you can find the leverage you
need to win.
e.g. Sega
asing the old tactic of divide and conquer, sow dissension within
the opposing camp.
You may have to look carefully but on close inspection even the
most solidlooking bloc is likely to yield up a fissure you can
exploit.
e.g. Ôepsi-cola
More natural than allowing your competitor·s competitors to wear
him down?
After all, as the old saying has it, ´the enemy of my enemy is my
friendµ.
But judo strategists don·t just sit back and let someone else do the
job.
§his ompany was earlier known as Imperial §obacco ompany of India Ltd.
ompany mainly operates in the industry like §obacco, Foods, Kotels, Stationary and
Greeting ards with the major products constitutes igarettes, packed foods, hotels, and
apparels.
Mar-2009 the turnover of company is at Rs. 15388 rore which is 10.3% higher than
previous year·s Rs. 13947.53 roreï
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I§: Its tremendous reach through extensive distribution chain
has been a competitive advantage.
§he company·s e-choupal model for direct procurement is
well known under which I§ partners with over 100,000
farmers for spices and wheat procurement.
Growth Drivers:
KaL: Introduction of premium products and addition of new
consumers via market expansion will be KaL·s growth drivers.
I§ : A rich product mix, along with ramp-up of investments in
its new sectors, will be instrumental in charting I§·s growth
path.
For KaL :
Being an MN operating in India, KaL is more conservative in its
strategies than its Indian counterparts.
Risk of being overtaken by domestic players in various categories.
Ôrolonged inflation may lead to margin contraction.
For I§ :
Increased regulatory clamps on tobacco, along with rising tax burden,
hence the diversification plan into the conventional FMG.
Export ban and rising crop prices pose a threat for its agri-business.
KaL·s up-and-running business model is a treat for investors seeking
exposure in the FMG segment.
I§ is eyeing the pie which KaL and other FMG players currently enjoy.
§hough risky, the company·s business model will pay off in the long run.
A common recommendation for both is that they should focus on Rural area
more
% &
Distribution
oke stronger in fountain. But Ôepsi growing in supermarkets.
Ôricing
No differences
Ôepsi's marketing strategy was continuing to win new customers.
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1950: oke have 47% and Ôepsi have 10%
1970: oke have 35% and Ôepsi have 29%
1990: oke have 41% and Ôepsi have 32%
2000:oke have 44%Ôepsi have31.4% other beverage adbury
Schweppes 14.7%
2006:oke have 43.1% Ôepsi have 31.7% adbury Schweppes
14.5%
Initially through the early 1960s oke was the winner. §he
reason was the extensive bottling franchise. And the second
most important is its brand name.
Kingfisher Red (formerly known as Air Deccan) - August 2003
Independent airlines -
Differentiation from other Ls
One type of Aircraft
One-class of configuration
Ôoint-to-point connectivity
Ôassengers can earn frequent flyer miles (called King Miles) for
tickets booked on Kingfisher Red through the King lub loyalty
program run by its parent Kingfisher Airlines.
Sought approval from the ivil Aviation Ministry to fly foreign
destinations including hina, Singapore and the Gulf.
§his way they have managed to keep their operational cost and
fleet sizes same while adding capacity in the market.
Sustainability is a framework for responding to the emerging
competitive threats and maintaining competitive advantage.
Attract customers
Better quality:
Better reputation:
Advantage comes from understanding and exploiting the
emerging competitive market patterns. §here is scope for
advantage based on:
Implementation capabilities
§he ability to do this depends in turn on the effectiveness and
integration of the appropriate key business activities and
processes (distinctive capabilities/ competencies) which underlie
cost competitiveness, quality, innovation, speed to market,
network building, and customer intimacy.
Ôroduction, marketing, logistics, supply chain management,
collaboration, branding, quality, market development, product
development, and innovation.
Which in turn depends on organisational processes and
practices such as KRM, information and decision management,
and relationship management
? Low cost/ differentiation may indeed be the proximate cause
of A but they cannot be the ultimate source.
A difference that matters
A gap in capabilities
Sustainable differentiation