New designs introduced every quarter, differentiating strategy offering range of gold, pearl and diamond jwewlery for men and women treating jewlery as fashionable items rather than just investment. Titan Watches: Fast track watches were launched for youth segment, the cool, trendy, funky range for the young and young-at-heart were well differentiated itself as youth watches compare to TATA’s other watches.
DELL:- DELL India is a export hub for Asia market, DELL uses Indian talent and raw material (of best quality) for production at Chennai, they get the best mixture of raw material & skills to produce at low cost with best quality.DELL Chennai manufacturing unit cater 60% of their Asian mkt demand.
Business level strategy Analysis Presented By……. Anil Dhankhar
Core competencies Strategy Business-level strategy Core Competencies and Strategy The resources and capabilities that have been determined to be a source of competitive advantage for a firm over its rivals An integrated and coordinated set of actions taken to exploit core competencies and gain a competitive advantage Actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product markets
Business Level Strategy Three Issues: Whom it will serve. What needs target customers have that it will satisfy. How those needs will be satisfied through implementation of given strategy.
1. Cost Leadership Strategy An integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors with features that are acceptable to customers Relatively standardized products Features acceptable to many customers Lowest competitive price
Not understanding what buyers want or prefer and differentiating on the “wrong” things
Competitive Risks of Differentiation The price differential between the differentiator’s product and the cost leader’s product becomes too large Differentiation ceases to provide value for which customers are willing to pay Experience narrows customers’ perceptions of the value of differentiated features Counterfeit goods replicate differentiated features of the firm’s products
Competitors find effective ways to match a focuser’s capabilities in serving niche
Niche buyers’ preferences shift towards product attributes desired by majority of buyers--the niche becomes part of the overall market
Segment becomes so attractive it becomes crowded with rivals, causing segment profits to be splintered
4. Integrated Cost Leadership/ Differentiation Strategy A firm that successfully uses an integrated cost leadership/differentiation strategy should be in a better position to: Adapt quickly to environmental changes Learn new skills and technologies more quickly Effectively leverage its core competencies while competing against its rivals
Risks of the Integrated Cost Leadership/ Differentiation Strategy Often involves compromises Becoming neither the lowest cost nor the most differentiated firm Becoming “stuck in the middle” Lacking the strong commitment and expertise that accompanies firms following either a cost leadership or a differentiated strategy