Marel Q1 2024 Investor Presentation from May 8, 2024
Business strategy
1.
2.
3. Business strategy can be understood as the course of
action or set of decisions which assist the
entrepreneurs in achieving specific business
objectives.
A master plan that the management of a company
implements to secure a competitive position in the
market, carry on its operations, please customers and
achieve the desired ends of the business.
A business strategy is a set of competitive moves
and actions that a business uses to attract customers,
compete successfully, strengthening performance,
and achieve organisational goals.
4. It’s a method to reduce costs and produce the
least expensive goods in a market or industry in
an effort to gain market share.
The modern business environment is a very
complex and sophisticated one with consumers
being aware of the choices available to them.
One way firms differentiate themselves is
through competitive pricing.
Businesses who have the least production costs
are able to offer the same level of product
quality compared to their competitor for a much
lower price.
5. A company like Payless is a good example of
this strategy.They try to limit the number of
employees in their shops and allow
customers to serve themselves in an effort to
cut operational costs.These cost cutting
measures allow them to offer brands that are
of a certain quality at an affordable price.
6. Wal-Mart is example of
this concept.They have
made their operations
so efficient and built
such a large
distribution network
that they are able to
get preferential pricing
on goods and sell them
to consumers for less
than other retailers.
7. Differentiation strategy, as the name
suggests, is the strategy that aims
to distinguish a product or service, from
other similar products, offered by the
competitors in the market.
It entails development of a product or service,
that is unique for the customers, in terms
of product design, features, brand image,
quality, or customer service.
8. Product:
To have an edge over the
competitors, a company can
offer innovative products to
its customers that best fulfils
their requirements.
This may involve a huge cost
in research and development,
production and marketing.
Nevertheless, the return on
investment is more than the
cost involved, as the firm
becomes the market leader in
offering that product.
9. Pricing
Market forces, i.e. supply
and demand decides the
price of the product, so it
tends to fluctuate and is
greatly affected by
product value to the
customer.
To gain differentiation
through pricing, either a
firm can charge the lowest
price for its product or gain
superiority by charging
maximum prices.
10. Organisation
Differentiation can also
be based on
organization, wherein a
firm earns success
through the brand
name, location
advantage, goodwill and
customer loyalty etc.
11. Provide utility to the customers, by offering such
product that perfectly matches their needs and
preferences.
Product innovation
Increase product performance
Set the price of the product based on the
features of the product and purchasing power of
the customer.
Create a brand image, by ensuring better
quality, services and customer satisfaction.
12. The firm can price the product higher than its
competitors and receive customer loyalty, as
the consumers may be accustomed to the
unique features.
Differentiation features may include, product
performance, ease of use, useful life, superior
service and so forth.
13. A marketing strategy in which a company
concentrates its resources on entering or
expanding in a narrow market or industry
segment.
A focus strategy is usually employed where the
company knows its segment and has products to
competitively satisfy its needs.
A focus strategy involves offering the niche-
customers a product customized to their tastes
and requirements.
It is directed towards serving the needs of a
limited customer group.
14. Particular buyer group (such as women,
youths, adolescents or aged 50+),
geographic uniqueness (such as south of USA
or South of France)
special product attributes that appeal only to
niche members (such as specially designed
neck-tie or fancy Punjabi)
a particular product line (such as lemon juice,
children’s shoes or detergent with bleach).
15. Cost focus
In cost focus a firm seeks a cost advantage in its
target segment. Cost focus exploits differences in
cost behavior in some segments.
Differentiation focus
In differentiation focus a firm seeks differentiation
in its target segment. It exploits the special needs
of buyers in certain segments.
16. It helps to build strong relationships within
each target market
It improves the pricing structure for the
business
It brings expertise into the products or
services
It allows you to identify your future
customers with specificity
17. It may limit the competition
It typically offers lower production costs.
It is a chance to provide a higher quality
product.
It can restore the reputation of a brand.
It can improve customer service.
18. It may limit the initial demand of a product
or service
It can limit future growth
It may focus on a temporary demographic
It does not eliminate the threat of
disruptors
