Big C operates hypermarkets and supermarkets in Vietnam and other countries. It has over 17 stores in Vietnam and follows a strategy of cost leadership, targeting a mass market with reasonable prices. However, some criticize that while some products are cheaper, others are more expensive than competitors. An analysis using the SPACE matrix suggests Big C follow a conservative strategy, trimming costs and unprofitable products while maintaining financial strength until opportunities arise. Alternative strategies discussed include market penetration, market development through exporting or new stores, product development, and diversification through related or unrelated ventures.
The least risky strategy of the above is the market penetration, since it makes use of the firms existing
capabilities and resources.
http://www.researchomatic.com/Ansoff-Matrix-93098.html
The document discusses various new product pricing strategies and conditions for using them. It describes market skimming pricing, where companies set a high initial price to maximize revenue from early buyers, and market penetration pricing, where they set a low initial price to attract a large number of buyers quickly. The document also discusses adjusting prices based on product mixes, including pricing for product lines, optional products, captive products, by-products, and product bundles.
Markstrat simulation report. A team of 5 students from different countries managed the marketing department of
a virtual firm (Markstrat Simulation). The team had to make decisions regarding marketing
mix, R&D, brand portfolio, commercial team and market research studies. Team
performed well: at the end of the simulation, firm ranked 13 out of 46 virtual firms with
reference to Stock Price Index (SPI). University project. In English
Growth Strategies or Expansion Strategies
There are several ways for a business to grow or expand, including developing new products, entering new markets, increasing marketing, mergers and acquisitions, franchising, licensing, and initial public offerings. Ansoff's Growth Matrix is a common framework that considers growth through new and existing products and markets. Effective strategies require understanding customer needs, competitors, and having a clear vision and sales process. Examples demonstrate techniques like product diversification, market penetration, and market or product development.
This ten-year company report and 3-year marketing plan for Lobel Company has been created by its three managers to deliver to the company’s CEO a summary of the outstanding performance of Lobel, as well as a proposed marketing plan with future directions. Lobel was launched ten periods ago and has experienced great demand for its offerings. Research proved that the target market of Nutrites and Clinites consumers would like to buy our cosmetics and supplements contrary to other companies’ products. The marketing environment has been very receptive to the Lobel’s high-quality products. Over the next three years, Lobel can increase its distribution, offer improved products, and win new customers.
This document discusses competitive advantage and competitor analysis. It defines competitive advantage as an advantage over competitors gained by offering greater value to consumers. Competitor analysis is defined as the process of identifying key competitors, assessing their objectives, strategies, strengths, weaknesses, and reactions, and selecting which competitors to attack or avoid. The document outlines the steps in analyzing competitors and provides examples of analyzing companies like Walmart, McDonald's, Nike and Starbucks.
This document discusses the strategic plan of Faruki Pulp Mills. It analyzes the company's strengths, weaknesses, opportunities, and threats through a SWOT analysis. It also evaluates the political, economic, social, and technological factors in the industry through a PEST analysis. The document outlines Faruki's mission, objectives, marketing strategies, and sales growth strategies. It proposes evaluating strategies based on greatest yield and developing contingency plans with alternative businesses to mitigate risks.
Applying Zero-Based Thinking to Optimize Profit and Drive Growth in the CPG I...Will Ruiz
Viewpoint paper for the Food & Beverage industry.
Smaller, nimbler competitors are capturing the majority of the growth in an industry that is being reshaped by fast-changing consumer trends. In order to remain competitive, companies are looking for ways to improve their brand and product portfolios. Some of the more innovative ones have started leveraging SKU Portfolio Optimization to fund profitable brand-building activities and invest in key near-term growth initiatives.
The least risky strategy of the above is the market penetration, since it makes use of the firms existing
capabilities and resources.
http://www.researchomatic.com/Ansoff-Matrix-93098.html
The document discusses various new product pricing strategies and conditions for using them. It describes market skimming pricing, where companies set a high initial price to maximize revenue from early buyers, and market penetration pricing, where they set a low initial price to attract a large number of buyers quickly. The document also discusses adjusting prices based on product mixes, including pricing for product lines, optional products, captive products, by-products, and product bundles.
Markstrat simulation report. A team of 5 students from different countries managed the marketing department of
a virtual firm (Markstrat Simulation). The team had to make decisions regarding marketing
mix, R&D, brand portfolio, commercial team and market research studies. Team
performed well: at the end of the simulation, firm ranked 13 out of 46 virtual firms with
reference to Stock Price Index (SPI). University project. In English
Growth Strategies or Expansion Strategies
There are several ways for a business to grow or expand, including developing new products, entering new markets, increasing marketing, mergers and acquisitions, franchising, licensing, and initial public offerings. Ansoff's Growth Matrix is a common framework that considers growth through new and existing products and markets. Effective strategies require understanding customer needs, competitors, and having a clear vision and sales process. Examples demonstrate techniques like product diversification, market penetration, and market or product development.
This ten-year company report and 3-year marketing plan for Lobel Company has been created by its three managers to deliver to the company’s CEO a summary of the outstanding performance of Lobel, as well as a proposed marketing plan with future directions. Lobel was launched ten periods ago and has experienced great demand for its offerings. Research proved that the target market of Nutrites and Clinites consumers would like to buy our cosmetics and supplements contrary to other companies’ products. The marketing environment has been very receptive to the Lobel’s high-quality products. Over the next three years, Lobel can increase its distribution, offer improved products, and win new customers.
This document discusses competitive advantage and competitor analysis. It defines competitive advantage as an advantage over competitors gained by offering greater value to consumers. Competitor analysis is defined as the process of identifying key competitors, assessing their objectives, strategies, strengths, weaknesses, and reactions, and selecting which competitors to attack or avoid. The document outlines the steps in analyzing competitors and provides examples of analyzing companies like Walmart, McDonald's, Nike and Starbucks.
This document discusses the strategic plan of Faruki Pulp Mills. It analyzes the company's strengths, weaknesses, opportunities, and threats through a SWOT analysis. It also evaluates the political, economic, social, and technological factors in the industry through a PEST analysis. The document outlines Faruki's mission, objectives, marketing strategies, and sales growth strategies. It proposes evaluating strategies based on greatest yield and developing contingency plans with alternative businesses to mitigate risks.
Applying Zero-Based Thinking to Optimize Profit and Drive Growth in the CPG I...Will Ruiz
Viewpoint paper for the Food & Beverage industry.
Smaller, nimbler competitors are capturing the majority of the growth in an industry that is being reshaped by fast-changing consumer trends. In order to remain competitive, companies are looking for ways to improve their brand and product portfolios. Some of the more innovative ones have started leveraging SKU Portfolio Optimization to fund profitable brand-building activities and invest in key near-term growth initiatives.
This document discusses analyzing competitors and different types of competitors. It provides examples of industry competitors like Coca Cola and Pepsico. There are two main types of competitors: industry competitors, which are classified based on factors like product differentiation and barriers to entry/exit; and market competitors, which can help a firm tap into new markets while minimizing competition. The document advocates using "blue ocean thinking" to find unoccupied market positions that create real value innovation, like how a Belgian movie theater company created a unique low-cost cinema experience.
Tiger Brands Limited (TBL) pursues a cost leadership strategy in the fast moving consumer goods (FMCG) industry in South Africa and other African countries. As the largest FMCG company in the region, TBL aims to offer the lowest prices through economies of scale, a wide distribution network across 22 countries, and pursuing backward integration to reduce costs. TBL also pursues product differentiation by introducing new product sizes and features. However, the FMCG industry has high competition, threat of substitution, and power of consumers, which forces TBL to maintain low prices while also innovating to differentiate its brands.
Advertising is any paid form of non-personal promotion of ideas, goods, or services by an identified sponsor. The objectives of advertising are to inform, persuade, or remind target audiences. When setting an advertising budget and strategy, factors like the product life cycle stage, market share, and brand differentiation must be considered. An effective advertising message is created by developing a message strategy and execution style. Advertising media is selected based on reaching the intended audience through criteria like reach, frequency, impact, and media timing. Major media types include television, newspapers, the internet, direct mail, magazines, and radio - each with their own advantages and limitations for delivering advertising messages.
H&M is a Swedish clothing retailer known for fast fashion at low prices. In recent years, it has grown rapidly by opening many new stores globally and through strategic partnerships with fashion designers. For the 2009 fiscal year, H&M saw a 15% increase in sales but weaker growth due to the recession. It plans further expansion in key markets in 2010 through new stores and online sales in the UK. Key strengths are its fashion offerings and quality at low prices, while weaknesses include potential issues with its logistics and risks from oil price fluctuations.
Every company desiring to stay competitive must design broad competitive marketing strategies by which it can gain a sustainable competitive advantage. But what broad marketing strategies might the company use? Which ones are best for a particular company or for the company’s different divisions and products? No one strategy is best for all companies. Each company must determine what makes the most sense given its position in the industry and its objectives, opportunities, and resources. Even within a company, different strategies may be required for different businesses or products. Johnson & Johnson uses one marketing strategy for its leading brands in stable consumer markets, such as BAND-AID, Tylenol, Listerine, or J&J’s baby products, and a different marketing strategy for its high-tech health-care businesses and products, such as Monocryl surgical sutures or NeuFlex finger joint implants. So you understand that no one best strategy truly exist for all firms. But which strategy is best for which company? This chapter attempts an appropriate respond to the question.
This document discusses how companies can analyze competition within their industry. It outlines Michael Porter's five competitive forces model which identifies industry competitors, substitute products, potential entrants, buyers' bargaining power, and suppliers' bargaining power as key factors that determine the attractiveness of an industry. The document then provides tips for companies to identify their direct and indirect competitors based on satisfying similar customer needs. It also offers strategies for analyzing competitors' objectives, strengths, weaknesses, and strategies to determine how to position themselves against competitors. Finally, it stresses the importance of balancing a customer-centered approach with monitoring competitors.
Markstrat web participant-handbook-chap 1 a 3Master MOI
This document provides an overview and instructions for participants in the Markstrat Challenge marketing simulation. It includes:
1) An introduction explaining the participant's role as manager of a marketing department tasked with maximizing share price over several years through strategic decisions.
2) An overview of the simulation world including details on the durable goods products, customers, competitors, and economic environment.
3) Instructions on managing the firm and the types of marketing mix decisions required each round, including production, pricing, advertising, research and development, and productivity gains.
4) Guidance for participants on preparing for the simulation through reading the handbook and practicing the software tools.
Strategies that strongly position the company against competitor and give the company strongest possible strategic advantage.
Competitive Strategies helps in:
Building profitable customer relationships
Gaining competitive advantage
Analyzing their competitors
This document provides an overview of the key considerations and steps involved in developing a marketing strategy in the PharmaSim simulation. It discusses the importance of situation analysis to understand customers, competitors, and the company. It then covers the key elements of marketing selection including segmentation, targeting, and positioning. The document dives into the 4Ps of marketing - product, price, promotion, and place. For each P, it highlights important reports to analyze and decisions that must be made. It concludes with tips for analysis, the grading approach, and key dates for the PharmaSim simulation rounds. The overall summary is that this document outlines the marketing framework and strategic decisions players will need to make in PharmaSim to maximize performance.
V48 ch11 dealing with competition johnson melojmmelo
This document outlines 10 concepts for dealing with competition. It discusses understanding industry forces and structure, identifying and evaluating competitors, analyzing different types of market positions and strategies such as market leaders, challengers, followers and nichers. It also covers developing defense strategies and balancing a focus on customers and competition. The key is understanding the broader industry and competitors while exploiting weaknesses and emerging customer needs.
Winning PharmaSim Marketing Game StrategyLaura Winger
With a symphony of heavy data mining and simulation, my team was able to beat the competition (teams of fellow classmates) with no spending on pricey market research reports in this marketing game.
The document discusses various marketing strategies for entering new markets as either a pioneer or late entrant. It notes that pioneers typically have significant market share advantages but can lose their lead if they become complacent. Late entrants can succeed through distinctive positioning or by taking advantage of gaps in pioneers' offerings. The strategies discussed include reducing price, improving products/services through niche targeting, entering new geographic markets, and developing new distribution channels.
The document provides an overview of market performance for companies Sonite and Vodite in a simulation game. Over 8 periods, the total market increased 5 times and Sonite held 12% market share while Vodite dramatically grew to 1000% market share. For the next periods, the total market is projected to increase 103% while Sonite is expected to decrease 7% and Vodite increase 159%. The document also outlines strategies, mistakes made, and recommendations for each company to improve performance.
The document discusses pricing strategies and factors to consider when setting prices. It covers internal factors like costs of production and external factors like competition and economic conditions. The major pricing strategies discussed are customer value-based pricing, cost-based pricing, and competition-based pricing. It also discusses strategies for new products, products within a mix, and adjusting prices for different customers. The objectives of pricing are to ensure business survival, improve profitability, and increase sales and market share.
Kotler08exs dealing with the competitionSaqib Manzoor
This document summarizes a PowerPoint presentation about dealing with competition. It discusses identifying competitors and their strategies, designing competitive intelligence systems, deciding on a competitive positioning strategy as either a market leader, challenger, follower or nicher, and balancing a customer versus competitor orientation. The presentation covers Porter's five forces model of competition, different industry structures, methods for competitor analysis, strategies for defending or expanding market share, and general and specific competitive strategies.
Strategic management mba final project dec 2021RaMyMoHamed77
Dollar General was considering expansion plans in 2011 to open 625 new stores, add 6,000 employees, and remodel 550 existing stores. They hoped this would help increase their market share from 41% to 59% and take advantage of economic growth. However, management recognized increased debt from expansion could negatively impact the business. After analyzing their financials, market position, and strategies, it was recommended that Dollar General continue their growth strategy through international expansion, market development, and pursuing opportunities in the healthcare industry through partnerships.
This document discusses competitive strategies for different types of companies in a market. It covers strategies for market leaders to defend their position such as expanding the total market, defending market share, and expanding market share. Strategies are provided for market challengers to attack leaders or other competitors through frontal, flank, encirclement, or bypass attacks. The document also discusses strategies for market followers to hold customers and win new ones, and strategies for market nichers to create, expand, and protect niches. Competitive forces and how to analyze competitors is also summarized.
AllRound is a pharmaceutical company that produces a 4-hour multi-symptom cold liquid. This marketing plan outlines AllRound's marketing strategy and tactics for the coming year. It includes a situational analysis of AllRound's competitive environment and target markets. The plan sets objectives to increase sales, improve new product awareness, and maintain brand loyalty. AllRound's strategy is integrative growth by potentially acquiring suppliers, wholesalers, or competitors. Tactics include penetrating new markets like cough and allergy while maintaining the core cold liquid product. Financial projections estimate a break-even point of 102,100 units based on costs and unit price.
Strategic Marketing final presentation (re-submission)Kyle Sander
This document contains a presentation by Team 5 on their marketing strategy and analysis for Allstar Pharmaceuticals. It includes sections on SWOT analysis, goals and objectives, market segments, competition, target markets, new product formulations and line extensions, communication and delivery of value, competitive strategy analysis, portfolio analysis, revenue and costs, capacity, pricing, and expenditures. The team aimed to remain the market leader with Allround while introducing new products Allround+ and Allright. They analyzed factors like market share, sales, costs, margins, and net income across multiple periods to evaluate performance.
The document discusses various strategies for achieving profit and growth, including developing new products, retaining customers, increasing market share, optimizing organizational structure and processes, and coaching sales representatives. It emphasizes focusing resources on high-growth opportunities, balancing product portfolios at different lifecycle stages, and moving performance toward superiority through talent mapping and development.
The McKinsey 7S Framework is a model developed in the 1980s to analyze how well an organization is positioned to achieve its objectives. The 7S model examines 7 internal elements - structure, strategy, systems, style, staff, skills, and subordinate goals - that must be aligned for an organization to be successful. The framework can be used to identify what needs improvement, plan for change, and assess where an organization currently stands and where it wants to be. If inconsistencies are found between the 7 elements, it may indicate why an organization or team is not working as effectively as possible.
This document discusses analyzing competitors and different types of competitors. It provides examples of industry competitors like Coca Cola and Pepsico. There are two main types of competitors: industry competitors, which are classified based on factors like product differentiation and barriers to entry/exit; and market competitors, which can help a firm tap into new markets while minimizing competition. The document advocates using "blue ocean thinking" to find unoccupied market positions that create real value innovation, like how a Belgian movie theater company created a unique low-cost cinema experience.
Tiger Brands Limited (TBL) pursues a cost leadership strategy in the fast moving consumer goods (FMCG) industry in South Africa and other African countries. As the largest FMCG company in the region, TBL aims to offer the lowest prices through economies of scale, a wide distribution network across 22 countries, and pursuing backward integration to reduce costs. TBL also pursues product differentiation by introducing new product sizes and features. However, the FMCG industry has high competition, threat of substitution, and power of consumers, which forces TBL to maintain low prices while also innovating to differentiate its brands.
Advertising is any paid form of non-personal promotion of ideas, goods, or services by an identified sponsor. The objectives of advertising are to inform, persuade, or remind target audiences. When setting an advertising budget and strategy, factors like the product life cycle stage, market share, and brand differentiation must be considered. An effective advertising message is created by developing a message strategy and execution style. Advertising media is selected based on reaching the intended audience through criteria like reach, frequency, impact, and media timing. Major media types include television, newspapers, the internet, direct mail, magazines, and radio - each with their own advantages and limitations for delivering advertising messages.
H&M is a Swedish clothing retailer known for fast fashion at low prices. In recent years, it has grown rapidly by opening many new stores globally and through strategic partnerships with fashion designers. For the 2009 fiscal year, H&M saw a 15% increase in sales but weaker growth due to the recession. It plans further expansion in key markets in 2010 through new stores and online sales in the UK. Key strengths are its fashion offerings and quality at low prices, while weaknesses include potential issues with its logistics and risks from oil price fluctuations.
Every company desiring to stay competitive must design broad competitive marketing strategies by which it can gain a sustainable competitive advantage. But what broad marketing strategies might the company use? Which ones are best for a particular company or for the company’s different divisions and products? No one strategy is best for all companies. Each company must determine what makes the most sense given its position in the industry and its objectives, opportunities, and resources. Even within a company, different strategies may be required for different businesses or products. Johnson & Johnson uses one marketing strategy for its leading brands in stable consumer markets, such as BAND-AID, Tylenol, Listerine, or J&J’s baby products, and a different marketing strategy for its high-tech health-care businesses and products, such as Monocryl surgical sutures or NeuFlex finger joint implants. So you understand that no one best strategy truly exist for all firms. But which strategy is best for which company? This chapter attempts an appropriate respond to the question.
This document discusses how companies can analyze competition within their industry. It outlines Michael Porter's five competitive forces model which identifies industry competitors, substitute products, potential entrants, buyers' bargaining power, and suppliers' bargaining power as key factors that determine the attractiveness of an industry. The document then provides tips for companies to identify their direct and indirect competitors based on satisfying similar customer needs. It also offers strategies for analyzing competitors' objectives, strengths, weaknesses, and strategies to determine how to position themselves against competitors. Finally, it stresses the importance of balancing a customer-centered approach with monitoring competitors.
Markstrat web participant-handbook-chap 1 a 3Master MOI
This document provides an overview and instructions for participants in the Markstrat Challenge marketing simulation. It includes:
1) An introduction explaining the participant's role as manager of a marketing department tasked with maximizing share price over several years through strategic decisions.
2) An overview of the simulation world including details on the durable goods products, customers, competitors, and economic environment.
3) Instructions on managing the firm and the types of marketing mix decisions required each round, including production, pricing, advertising, research and development, and productivity gains.
4) Guidance for participants on preparing for the simulation through reading the handbook and practicing the software tools.
Strategies that strongly position the company against competitor and give the company strongest possible strategic advantage.
Competitive Strategies helps in:
Building profitable customer relationships
Gaining competitive advantage
Analyzing their competitors
This document provides an overview of the key considerations and steps involved in developing a marketing strategy in the PharmaSim simulation. It discusses the importance of situation analysis to understand customers, competitors, and the company. It then covers the key elements of marketing selection including segmentation, targeting, and positioning. The document dives into the 4Ps of marketing - product, price, promotion, and place. For each P, it highlights important reports to analyze and decisions that must be made. It concludes with tips for analysis, the grading approach, and key dates for the PharmaSim simulation rounds. The overall summary is that this document outlines the marketing framework and strategic decisions players will need to make in PharmaSim to maximize performance.
V48 ch11 dealing with competition johnson melojmmelo
This document outlines 10 concepts for dealing with competition. It discusses understanding industry forces and structure, identifying and evaluating competitors, analyzing different types of market positions and strategies such as market leaders, challengers, followers and nichers. It also covers developing defense strategies and balancing a focus on customers and competition. The key is understanding the broader industry and competitors while exploiting weaknesses and emerging customer needs.
Winning PharmaSim Marketing Game StrategyLaura Winger
With a symphony of heavy data mining and simulation, my team was able to beat the competition (teams of fellow classmates) with no spending on pricey market research reports in this marketing game.
The document discusses various marketing strategies for entering new markets as either a pioneer or late entrant. It notes that pioneers typically have significant market share advantages but can lose their lead if they become complacent. Late entrants can succeed through distinctive positioning or by taking advantage of gaps in pioneers' offerings. The strategies discussed include reducing price, improving products/services through niche targeting, entering new geographic markets, and developing new distribution channels.
The document provides an overview of market performance for companies Sonite and Vodite in a simulation game. Over 8 periods, the total market increased 5 times and Sonite held 12% market share while Vodite dramatically grew to 1000% market share. For the next periods, the total market is projected to increase 103% while Sonite is expected to decrease 7% and Vodite increase 159%. The document also outlines strategies, mistakes made, and recommendations for each company to improve performance.
The document discusses pricing strategies and factors to consider when setting prices. It covers internal factors like costs of production and external factors like competition and economic conditions. The major pricing strategies discussed are customer value-based pricing, cost-based pricing, and competition-based pricing. It also discusses strategies for new products, products within a mix, and adjusting prices for different customers. The objectives of pricing are to ensure business survival, improve profitability, and increase sales and market share.
Kotler08exs dealing with the competitionSaqib Manzoor
This document summarizes a PowerPoint presentation about dealing with competition. It discusses identifying competitors and their strategies, designing competitive intelligence systems, deciding on a competitive positioning strategy as either a market leader, challenger, follower or nicher, and balancing a customer versus competitor orientation. The presentation covers Porter's five forces model of competition, different industry structures, methods for competitor analysis, strategies for defending or expanding market share, and general and specific competitive strategies.
Strategic management mba final project dec 2021RaMyMoHamed77
Dollar General was considering expansion plans in 2011 to open 625 new stores, add 6,000 employees, and remodel 550 existing stores. They hoped this would help increase their market share from 41% to 59% and take advantage of economic growth. However, management recognized increased debt from expansion could negatively impact the business. After analyzing their financials, market position, and strategies, it was recommended that Dollar General continue their growth strategy through international expansion, market development, and pursuing opportunities in the healthcare industry through partnerships.
This document discusses competitive strategies for different types of companies in a market. It covers strategies for market leaders to defend their position such as expanding the total market, defending market share, and expanding market share. Strategies are provided for market challengers to attack leaders or other competitors through frontal, flank, encirclement, or bypass attacks. The document also discusses strategies for market followers to hold customers and win new ones, and strategies for market nichers to create, expand, and protect niches. Competitive forces and how to analyze competitors is also summarized.
AllRound is a pharmaceutical company that produces a 4-hour multi-symptom cold liquid. This marketing plan outlines AllRound's marketing strategy and tactics for the coming year. It includes a situational analysis of AllRound's competitive environment and target markets. The plan sets objectives to increase sales, improve new product awareness, and maintain brand loyalty. AllRound's strategy is integrative growth by potentially acquiring suppliers, wholesalers, or competitors. Tactics include penetrating new markets like cough and allergy while maintaining the core cold liquid product. Financial projections estimate a break-even point of 102,100 units based on costs and unit price.
Strategic Marketing final presentation (re-submission)Kyle Sander
This document contains a presentation by Team 5 on their marketing strategy and analysis for Allstar Pharmaceuticals. It includes sections on SWOT analysis, goals and objectives, market segments, competition, target markets, new product formulations and line extensions, communication and delivery of value, competitive strategy analysis, portfolio analysis, revenue and costs, capacity, pricing, and expenditures. The team aimed to remain the market leader with Allround while introducing new products Allround+ and Allright. They analyzed factors like market share, sales, costs, margins, and net income across multiple periods to evaluate performance.
The document discusses various strategies for achieving profit and growth, including developing new products, retaining customers, increasing market share, optimizing organizational structure and processes, and coaching sales representatives. It emphasizes focusing resources on high-growth opportunities, balancing product portfolios at different lifecycle stages, and moving performance toward superiority through talent mapping and development.
The McKinsey 7S Framework is a model developed in the 1980s to analyze how well an organization is positioned to achieve its objectives. The 7S model examines 7 internal elements - structure, strategy, systems, style, staff, skills, and subordinate goals - that must be aligned for an organization to be successful. The framework can be used to identify what needs improvement, plan for change, and assess where an organization currently stands and where it wants to be. If inconsistencies are found between the 7 elements, it may indicate why an organization or team is not working as effectively as possible.
Big C Vietnam follows a cost leadership business strategy. It achieves low costs through economies of scale from its large number of product lines and store locations. Big C also leverages experience in the Vietnamese market and strong supplier relationships to negotiate low input costs. Process design like the WOW private label brand and promotional programs further lower costs. This allows Big C to offer consumers unbeatably low prices while maintaining quality, driving its growth as the largest retailer in Vietnam.
This document provides an overview of Tesco, the largest retailer in the UK. It discusses Tesco's industry, competitors, strategies and financial performance. Tesco has over 2,400 stores worldwide, a 30% market share in the UK grocery market, and sales of over £22 billion in 2007. The document analyzes Tesco using various frameworks including Porter's five forces, resource-based view and SWOT analysis. It recommends Tesco focus on improving existing stores and potentially form strategic alliances to address weaknesses.
The document discusses the new product development process. It involves 7 key steps: 1) idea generation, 2) idea screening, 3) concept development and testing, 4) marketing strategy development, 5) business analysis, 6) product development, and 7) test marketing. The goal is to create new products that offer benefits to customers and satisfy market needs. Various techniques are used to evaluate ideas and concepts at each step to select the most viable new product options.
Financial services firms in Ethiopia are pursuing growth strategies to cope with increased competition. Many are looking to new products, markets, pricing structures, and distribution channels. More than two-thirds reported competition has increased over the past year. To address this, firms are focusing on technology, customer service, pricing, marketing, and adding value. This seeks to attract more customers and make existing offerings more competitive.
This document provides an overview of a corporate strategy syllabus chapter on competitive rivalry and competitive dynamics. It defines key terms like competitors, competitive behavior, and competitive dynamics. It discusses factors that affect a competitor's likelihood of taking actions or responding to actions. The opening case examines Google's competition in search and other markets from companies like Bing, Yahoo, Amazon and Facebook. It also analyzes competitive behaviors Google takes to build advantages over rivals. The document outlines different types of competitive behaviors firms may exhibit, like conflict, competition, co-existence and cooperation.
This document provides an executive summary of a study by the Boston Consulting Group (BCG) on the fast-moving consumer goods (FMCG) sector. It finds that while FMCGs historically drove strong value creation, their performance has lagged peers in recent years. Five emerging disruptions will define the next era for FMCGs: amplified consumer expectations, erosion of scale advantages, focus on social impact, radical channel shifts, and an AI-powered business revolution. To succeed, FMCGs must follow five strategic imperatives: become agile portfolio managers, reinvent demand models, elevate operating models, digitize capabilities, and inspire with purpose.
Strategic marketing planning involves matching a company's resources with market opportunities over the long run. It includes developing a mission, objectives, strategies, and tactics. The annual marketing plan operationalizes the strategic plan through situation analysis, objectives, strategies, tactics, financial schedules, and evaluation procedures. Strategic business units allow separate definition and profit responsibility for distinct businesses. Growth-share matrices assess businesses across industry attractiveness and competitive strength.
Rodney Lawrence Chapter 16 Marketing Strategy involves a sel.docxdaniely50
Rodney Lawrence
Chapter 16: Marketing Strategy involves a self-analysis and a reflection of the strengths and weaknesses of the company as established by the dashboard indicators. This involves reflecting on possible changes to target segments, price, place, and promotion, with the ultimate goal of increasing profitability in the company (Iacobucci, 2018). One of those most important and relevant sections of this chapter was the methods of growing sales volume and increasing sales. During this pandemic many companies have taken substantial losses due to companies shutting down, and not being able to keep up with th supply and demand of various products. Supply chains have also been affected with many products taking longer to meet their distributors. Meat for instance, has seen a significant increase in price due to the demand and shortage. Other possible foods such as pork, chicken, and fish, have seen some prices lowered to attract new buyers and have effected consumer choices and strategies of marketing tactics. Limitations in marketing channels have made pricing products vital in cutting profit losses and increasing product sales.
Chapter 17: Marketing Plans recapped the 5Cs, STP, and 4 Ps. This ultimately leads to the goal of a marketing plan to achieve company goals. Marketing plans are continuously changing due to various factors, such as the economy, and is made from numerous details and decisions (Iacobucci, 2018). The most important section of this chapter was the managerial checklist and how all of this combined helps to create the overall marketing plan. Using the 5Cs, STP, and 4Ps to coordinate a tactical approach in writing and producing the overall marketing plan (Iacobucci, 2018). After researching and writing on my group project I could see all of this classes information becoming more practical and realizing how everything combines to create a marketing plan for a company or product. Once everything is ultimately combined and presented the marketing plan shows its importance in helping companies promote and sell their product while hopefully creating an increase in popularity and overall profit margins for the long term, which can be altered and fitted to react to changes or misses involved in the distribution and sales of the product and company.
1) Amazon
Cost leadership-Amazon produces more purchasing options, and the cost and delivery options of the company are unparalleled. While most companies have taken extreme losses during this pandemic, Amazon actually increased profits exceeding 3 billion dollars.
Differentiation-Amazon uses bundles, excellence in pricing, speed of delivery, and easy accessibility to set themselves apart from all forms of distribution methods.
Focused-Amazon also separates because they have branched into multiple streams of revenue and industries. Besides the service industry specifically, they have branched into musical and television markets that connect to the basis of product sales.
Product Portfolio Strategies, BCG Matrix, How to make a BCG Matrix, Apple case study, BCG AND PLC, Merits and Demerits of BCG Matrix, GE Matrix, Merits and Demerits of GE Matrix
In this case, Net profit margin is positive. Company made more money then it...Aqif Chaudary
The document discusses marketing principles and their influence on business activities. It explains that marketing principles focus on key functions like market research and segmentation to help businesses compete effectively. Several elements of the marketing process are described, including understanding customer needs, analyzing competitors, and designing marketing strategies. The benefits and costs of marketing orientation for businesses are evaluated. Environmental factors like economic conditions, technology, and customer demographics that influence marketing decisions are also outlined. Different approaches to marketing products and services to businesses and internationally are discussed.
Boardroom Eco Apparel is a clothing manufacturing company that wants to launch a new online business casual line for men. Currently, Boardroom produces promotional clothing but lacks understanding of the business casual market and e-commerce. The marketing plan aims to launch the new line in January 2015 and generate $1 million in sales within a year through strategies targeting website visits, sales conversions, and customer satisfaction.
Doing more with less a point of view on marketing in a recessionWael Zekri
This document provides marketing advice for companies during an economic recession. It suggests seven strategies: 1) Guard high-value customers by identifying them and addressing their concerns. 2) Harvest customers who are ready to buy through search optimization and in-store activation. 3) Optimize budgets and channel allocation by examining spending across the marketing funnel and different channels. 4) Cut strategically within brand portfolios by reducing spending on smaller brands. 5) Use price promotions sparingly as they can damage long-term profitability. 6) Consider reassurance or value messages to address consumer sensitivity during a recession. 7) If feasible, consider a limited increase in spending targeting the most valuable customers.
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1. Introduction
Big C supercenter operates business in the form of “Hypermarket” or “Supercenter”, a modern
retail business which is managed under the umbrella of Casino group. It is one of the major
retailers in the world, with over 200,000 employees working in more than 11,000 stores, in
Vietnam, Thailand, Argentina, Uruguay, Brazil, Colombia, France, Madagascar and Mauritius.
Today, Big C has a total of 17 stores all around Vietnam. With more than 8,000 staffs, Big C
offers a clean, comfortable shopping environment with a wide assortment of goods available at
reasonable prices and provides an outstanding customer service in order to ensure the winning
business strategy. Big C provides a one-stop shopping experience to our customers with a wide
range of useful services at all stores. In addition, Big C represents two of the most important
criteria in business and strategic direction to their success. “Big” means "Great", which shows
the massive scale of Big C supermarket and a various selection of goods that they offer.
Currently, each Big C supermarket has about 40,000 items of goods to meet customer’s needs.
“C” is the abbreviation of the word "Customer", they are the key to the business strategy of the
Big C.
In the previous report, we have explained the strategy contents including missions, visions,
goals, core competencies as well as the significance of stakeholder analysis based on the
information of the business. We also analyzed the internal and external factors for the company
then using SWOT analysis in guiding strategy formulation for the company. This is the
continuation of the previous report, carrying out the next stages of strategy making: Crafting
strategies, and Evaluating possible alternative strategies.
2. Part 1
Revision of Existing strategies
1. Cost Leadership
We can see evidences in BigC’s behavior proving that this company is following a costleadership strategy. It focus on serving the mass market, targeting all people. We can see this
even in the vision statement of BigC (Nourishing a world of diversity). And it is clear that BigC
is using cheap prices as one of their most important selling points. According to Michael Porter’s
competitive strategies model, with a broad target and a price-based competitive advantage, we
can conclude that BigC is following a Cost Leadership strategy.
There have been criticisms about how BigC follow this strategy. The most popular
criticism by customers is that there are many products in BigC which are more expensive than in
other places. Here are some examples showing price comparison of the EXACT SAME ITEMS
in BigC and in wet markets:
Product
BigC’s price
Popular price (wet markets)
Kitchen knife
35,000 VND
15,000 VND
Nylon gloves (1 box)
26,000 VND
10,000 VND
Omachi noodles (pack)
6,000 VND
5,500 VND
Kids’ shoes
124,000 VND
24,000 VND
Many among BigC’s customers claim that BigC only sell some certain goods at a cheaper
price (especially FMCGs such as washing power, toothpaste, etc.); in order to create a belief that
they are selling cheap. The rest of BigC’s products are much more expensive than the usual
prices elsewhere.
This fact shows that BigC is not completely following the Cost Leadership strategy. They
are only using cheap prices (accepting even zero profit in some goods) to draw customers toward
them, then make profit by selling other products at prices higher than market levels.
Although BigC is still successful currently, it may suffer very significant damage when more and
more customers realize this fact and turn away from BigC. Hence, a more sustainable strategy
should be considered. Choosing a distinct direction – either fully cost leadership or fully
differentiation – may be advisable for this business.
2. Market penetration
Based on the Ansoff Matrix, we find that BigC is following a Market Penetration
strategy. They rarely expand their business to new products or new markets, instead BigC try to
maintain or increase their market share in existing products and secure their dominance; by
applying competitive pricing and aggressive sales promotion, as well as strengthening
advertising.
3. Market penetration is a strong but costly strategy to follow. There are several activities to
do in order to grow using this strategy:
Increase present customers’ rate of use:
o Increasing the size of purchase
o Maximizing the rate of product obsolescence
o Finding new uses for products
o Advertising other uses
o Offering incentives for increased use
Attracting competitors’ customers:
Lure customers away from competitors by establishing differentiation between BigC and
them, increasing advertising efforts, or cutting prices.
Attract non-users to buy:
This process can be done by offering trial uses of our products, adjusting the price up or
down, and promoting other uses to attract these customers.
Big C has been doing well in pursuing the Market Penetration strategy. Massive sales
promotion and bonuses makes customers want to buy more, buy in larger amount when shopping
at BigC. BigC drew many of competitors’ customers toward them: many shoppers who used to
go to Metro now prefer BigC, and many others who come to smaller supermarkets now come to
BigC for shopping. Many prefer buying massive amount of FMCG goods in BigC and stockpile
them instead of buying in usual distributors in wet markets (e.g. washing powder, toilet paper,
etc.). A large number of non-users became buyers: people usually complains that they usually
find themselves buying more than they intend to, and some of which are the things they do not
actually need.
We can see applying Market Penetration strategy has become a great success of BigC.
4. Part 2
Several alternative strategies
We hereby apply several different methods to craft strategies for the company.
1. SPACE Matrix – Strategic positioning
The Strategic Position & Action Evaluation matrix (SPACE matrix) is a strategic management
tool that focuses on strategy formulation especially as related to the competitive position of an
organization.
The SPACE matrix can give us the direction for building our strategies.
The SPACE Matrix analysis functions upon two internal and two external strategic dimensions
in order to determine the organization's strategic posture in the industry. The SPACE matrix is
based on four areas of analysis.
- Internal strategic dimensions:
Financial strength (FS)
Competitive advantage (CA)
- External strategic dimensions:
Environmental stability (ES)
Industry strength (IA)
By analyzing these areas using several most influential factors, addressing their characteristics
and importance, we can direct our strategies accordingly.
There are two tools similar to the SPACE matrix: the Boston Consultant Group matrix (BCG
matrix) and the McKinsey matrix (a.k.a. GE matrix). These tools are built based on the same
foundation with SPACE matrix (market/industry attractiveness and the firm’s competitive
position). However, BCG matrix and McKinsey matrix tend to provide much simpler and vague
direction, which may be unpractical for strategy development in our particular case of BigC.
Therefore, we decided to use the SPACE matrix as the sole representative for the “Market
attractiveness – Competitive position” models.
a. Financial Strength (FS)
Big C is a strong company in terms of finance. From establishment until now, BigC has
been keeping a steady grow in revenue, except for in 2007 when Vietnam experience
hyperinflation. The company even managed to increase its revenue in 2008, when the
global crisis happened. The table below shows BigC’s revenue from 2005 to 2008:
Year
2005
2006
2007
2008
5. Revenue (billion VND)
800
860
820
960
Besides, BigC also have a significant and stable revenue source from exports: in 2009 it
exported nearly 1000 containers of goods, with a net worth of around 17 million USD.
Moreover, BigC is a division of Groupe Casino (France), a successful multi-national
corporation. Hence, BigC is financially backed by this giant, taking advantage over many
of its competitors which are not supported (e.g. Co-opMart).
Because the financial data of BigC is not available to the public, we can only estimate
their financial strengths based on these factors. Accordingly, we give the Financial
Strengths of BigC the following scoring:
Financial Strength (FS)
Score
Steadily growing revenue
3
Stable income from exporting
4
Backed by Groupe Casino
5
Average
4
b. Competitive Advantage (CA)
Market Share of Supermarkets in
Hochiminh City (2008)
7%
26%
8%
Co-opMart
59%
Metro
BigC
Others
-Source: 2008 Hochiminh City consensus, as cited in Nguyen, 2009According to Nguyen (2009), BigC have certain competitive advantages and
disadvantages in comparison with strong competitors like Co-opMart. We hereby
summarize the most significant points and score them accordingly:
Competitive Advantage (CA)
Score
BigC has significant market share, but far after Co-opMart and Metro in
-4
South Vietnam.
BigC has hypermarkets all standardized, complying to 2005 national
-3
standards. Older competitors (established before 2005, including Co-opMart)
6. have many supermarkets which do not meet the standards.
A few products are cheaper in BigC than in other places, however Co-3
opMart has better promotion schemes for most of these products.
BigC has much less coverage than Co-opMart in South Vietnam, due to the
weak distribution system. In North Vietnam, BigC still reigns as the most -4
popular supermarket.
Less variety of products than Co-opMart and Metro.
-6
Rich in imported goods, but weaker than Co-opMart in terms of local goods.
-3
Better advertising and promotion activities (than all competitors).
-2
BigC has a wider variety of products produced by themselves.
-3
Average
-3.5
c. Industry attractiveness (IA)
Usually, FMCG goods is a SLOW growing market. However, the most profitable items
that BigC sells are not FMCG goods; plus the fact that Vietnamese population is growing
fast, this is not a limitation for the growth of BigC’s market size. In fact, since BigC’s
revenue is growing very well (around 10% per year) when market share stays stable, we
can safely say that this industry is growing steadily.
Besides the industry’s growth rate, we should also consider the Porter’s Five Forces to
analyze the industry attractiveness. (To see more details about Five Forces analysis for
BigC, please refer to the previous report of us). The total compilation of all these factors
is shown below.
Industry Attractiveness (IA)
Score
Averagely growing industry
4
Relatively high threat of new entrants
2
Very high threat of substitutes
1
Low bargaining power of suppliers
5
Considerably high bargaining power of buyers
2
There are strong competitors, especially in South Vietnam
2
Average
2.67
d. Environmental Stability (ES)
We address BigC’s Environmental Stability mainly by looking back at our previous
PESTEL analysis.
Environmental Stability (ES)
Score
Very politically stable, but business legislations are frequently adjusted
-3
Chaotic bank policies and interest rates
-6
Society is developing toward modernization
-2
Technologically developing: online shopping becomes more popular, more -2
comfortable shopping, electronic payment, etc.
7. Economic cycle stage: in crisis, which is unfavorable for now; but will have -2
great potential to grow later.
Average
-3
Using all the estimations shown above, we can plot the dimensions into a SPACE matrix
and draw a suggestive conclusion about BigC’s future strategy direction.
As we can see in this figure, the SPACE model gave us a suggestion that BigC should
follow the Conservative Strategy. This strategy is similar to the Dog position in BCG matrix,
and the Controlled Harvest position in McKinsey matrix.
8. The strategic movements that these two tools suggest are much similar to the points
brought by SPACE matrix below.
Conservative strategy is often suggested by SPACE matrix if the industry looks bad and
the business has significant competitive advantages. It is when any remaining profitability is
under major threat and the business can become a cash drain which will reduce financial strength
to diversify elsewhere.
9. The business should look to trim costs and any loss making customers and products
wherever it can to buy more time to find attractive diversification opportunities. It should also
cut back on capacity so that it shrinks to fit the future market expectations. We should consider
the various SBUs of BigC and even the particular activities or products in each SBU. Food
processing is an important and significant SBU for BigC: though not too popular in Vietnam, it
is the source for BigC’s stable income from exporting. So we should consider the specific
products in BigC’s retailing system: which products are inefficient for the business, which are
important to the business. We need to clarify the strategic role of each product in order to have
precise decisions.
Otherwise the business may be able to improve its position through a determined strategy
to improve its competitive advantages. They can make major gains through focused action and
find overlooked assets and opportunities. However, BigC should be careful so that it doesn’t
over-invest because the market isn’t considered to be attractive. The business may identify
niches where it does have advantages or can quickly develop advantages that are not appreciated
in the wider market.
The conservative strategy in the SPACE matrix also suggests that the business is not
under major threats from the environment; and because of its financial strengths, it has time to
consider its options.
2. Ansoff Matrix
As we mentioned in Part 1 of this report, BigC has been following the Market Penetration
strategy in the Ansoff matrix, and it brought significant success to the company. We hereby
address more alternative strategies that the company may want to follow, by looking at other
directions in the Ansoff matrix.
10. a. Market development
Market development is the name given to a growth strategy where the business seeks to sell its
existing products into new markets.
There are many possible ways of approaching this strategy, including:
New geographical markets; for example exporting the product to a new country
New product dimensions or packaging.
New distribution channels
Different pricing policies to attract different customers or create new market segments
In the case of BigC, there are two most appealing options for market development:
Exporting its products (processed food) to new countries, using the existing export SBU
located in Dong Nai.
Opening new hypermarkets/supermarkets in new locations
b. Product development
Product development is the name given to a growth strategy where a business aims to
introduce new products into existing markets. This strategy may require the development of new
competencies and requires the business to develop modified products which can appeal to
existing markets.
For BigC, the production SBU may consider developing new products or product lines to
add to their production system of food processing. This activity will need some time and efforts
of the R&D department and also the market research division of the company. The retailing SBU
11. may find new products to sell in their hypermarkets, this requires intensive work of the market
research division of BigC. Since selling in hypermarkets such as BigC’s needs very good market
adaptability and precise timing for the release of each and every product, finding most
appropriate products to sell at the most appropriate time is a difficult job.
c. Diversification
Diversification is the name given to the growth strategy where a business markets new products
in new markets.
This is an inherently more risk strategy because the business is moving into markets in which it
has little or no experience.
For a business to adopt a diversification strategy, therefore, it must have a clear idea about what
it expects to gain from the strategy and an honest assessment of the risks.
For BigC, the company may want to spend money to establish a whole new business. In fact, the
word “establish” is used loosely here: for better pace and efficiency, companies wanting to
diversify usually do so by merging with or taking over other companies.
Diversification can be either related or unrelated to BigC’s existing business. There are several
options:
Vertical integration: The forward vertical integration is not available, since BigC’s
vertical end is retailing, and the deliveries are already done by themselves. In backward
vertical integration, BigC can start doing business in farming, thus supplying inputs for
its food processing SBU. Another way is to produce other goods to supply its retailing
hypermarkets. Food items and FMCGs are the most viable options, since other types of
products are less likely to make profit when producing and selling in small amounts.
(Note that producing food items here means opening/taking over businesses which
produces food, not expanding the existing food processing SBU to produce new
varieties).
Horizontal integration: BigC can buy (take over) other companies. This option is highly
potent, since widening the distribution channel is a favorable move for BigC. Gaining
more market share and eliminating competitors are also good for the business. However,
cost is the main concern in this option.
Merging with strong competitors may be a solution, but this has never been the case with
Groupe Casino. This option is likely to be denied by the parent company.
Unrelated integration: this is a very risky option, since the company will need to strive in
a market it has no experience in. Unrelated integration has no limitation, the company can
spend money to establish a new business or take over any business that it sees great
potential for profit. BigC should know really well what it is doing, and should have
extremely careful research about its choices before deciding to execute this option.
Summary of alternative strategies given:
12. 1. Looking to trim costs by selecting which products are important to us, which products
negatively affect our profitability. Cut costs by not working in unworthy products and
focus on most profitable ones.
2. Find niches to focus at, developing a differentiation plan to gain market share in
particular segments, assuring better profitability.
3. Exporting to more countries.
4. Establishing new hypermarkets to cover more geographical area.
5. Develop new products in the food processing SBU.
6. Finding new products to retail.
7. Backward-integrate with farming, supplying inputs for the food processing SBU.
8. Backward-integrate with producing new food items or FMCG goods.
9. Purchase smaller supermarkets to make them BigC’s.
10. Establish or take over businesses unrelated to existing enterprise, selecting only the best
potent businesses.
13. Part 3
Strategy evaluation
In this part, we assess the alternative strategies found in Part 2 of this report, by using three main
criteria: suitability, feasibility and acceptability. We included Ranking and Scoring to evaluate
the advantages/disadvantages of each strategy. Since we do not have access to the company’s
particular objectives in detailed figures, all evaluations here are qualitative.
Note that during the formation of the strategies above, we already filtered some obviously
inappropriate options using these criteria. For example, the option of merging with strong
competitors was removed because of Acceptability: it is likely to be denied by Groupe Casino
(France), the parent company of BigC.
1. Suitability: “Should it be done?”
The first criterion we use to assess a strategy is whether the strategy has significant positive
effects to the business or not. A suitable strategy needs to comply to the following criteria:
Does the strategy fit well with the company’s situation? That is, does it concern the
strength, weakness, opportunity and threats of the company (see our SWOT analysis in
the previous report for details)
Does the strategy fit with the organization’s vision, mission, goals and objectives?
The table below lists all 10 alternative strategies we mentioned in Part 2, and grade their
feasibility accordingly in the manner similar to Ranking and Scoring method.
Strategy
Use
Avoid Take
Deal
Comply Total
Stren- & fix Oppor- with
to
Score
gths
Weak- tunities Threats existing
nesses
purposes
Relative Weight
3
2
3
2
2
12
1. Cut costs by not working in
6
unworthy products and focus on
most profitable ones.
2. Find niches to focus at, developing
8
a differentiation plan to gain market
share in particular segments,
assuring better profitability.
3. Exporting to more countries.
8
4. Establishing new hypermarkets to
cover more geographical area.
5. Develop new products in the food
processing SBU.
6. Finding new products to retail.
9
8
8
14. 7. Backward-integrate with farming,
supplying inputs for the food
processing SBU.
8. Backward-integrate with producing
new food items or FMCG goods.
9. Purchase smaller supermarkets to
make them BigC’s.
10. Establish or take over businesses
unrelated to existing enterprise.
3
5
10
6
2. Feasibility: “Could it be done?”
The second criterion is whether the company have sufficient resources to follow the strategies
(financial resource, human resource, management capability, time, and many other activitylimiting factors).
The feasibility of each strategy is highly dependent on the nature of the strategy itself. Different
strategy needs different resources and in different amount. For example, exporting to more
countries needs attention about production capacity, and if it is insufficient, many resources must
be poured in. Developing new products in the food production SBU needs time and an amount of
retained profit to invest in research and development. Related integration (horizontally and
vertically) needs less time, but much larger amount of money. However, integration projects are
likely able to receive financial support from the parent company, Groupe Casino.
The table below addresses the feasibility of each strategy. Strategies with lower feasibility means
it needs more resources, which the company may not have enough to supply.
Strategy
11. Cut costs by not working in
unworthy products and focus
on most profitable ones.
12. Find niches to focus at,
developing a differentiation
plan to gain market share in
particular segments, assuring
better profitability.
13. Exporting to more countries.
Resource needed
None
Feasibility
Perfect
Money, time (for market Good
research,
then
product
development).
Money
should be from retained
profit
All resources to improve Good
production capacity
14. Establishing new hypermarkets Money,
management Low
to cover more geographical capability, human resource
area.
15. Develop new products in the Time, money for R&D
Good
food processing SBU.
16. Finding new products to retail. Money for market research
Good
17. Backward-integrate
with Money
Average
farming, supplying inputs for
15. the food processing SBU.
18. Backward-integrate
with Money
producing new food items or
FMCG goods.
19. Purchase smaller supermarkets Money
to make them BigC’s.
20. Establish
or
take
over Money
businesses unrelated to existing
enterprise.
Average
Low
Low
3. Acceptability
Since BigC is not a public limited company, the main stakeholders influential to the acceptability
of strategies are the parent company and the managers. Managers pay attention mostly to the
development of the company, hence they are more concerned about the suitability and feasibility
of the strategies. They are generally more short-term minded than shareholders. However, the
parent company (including its internal shareholders) pays more attention to the profitability of
the business, and they usually think more long-term. They concern about how their money are
being spent.
The suggested strategies should not have problem with acceptability, with the exception of the
four diversification strategies. Since integration strategies (vertical and horizontal) needs a large
amount of money to be invested in, while being a risky move, stakeholders may question about
whether to do it or not. The last strategy (unrelated diversification) is the least acceptable option,
due to the enormously high risk involved.
4. Summary
After all the evaluations above, we hereby suggest the most suitable, feasible and acceptable
strategies that can help BigC develop well in the near future:
- Use retained profit to improve production capacity (food processing SBU), export to
more countries in order to increase the stable source of income.
- Press on market research in order to adapt well with market trends; always sell the most
desired products in the market.
- Take over weaker competitors to increase geographical coverage and market share. The
company should ask for support from Groupe Casino to have sufficient financial resource
to do this.
16. Conclusion
In this report, we have revealed the issues involved in strategic planning for Big C. We
analyzed the existing strategies that BigC has been applying, assessing their effectiveness. We
also used several tools for strategy formation, mainly SPACE matrix and Ansoff Matrix, in order
to form several alternative strategies for BigC. After assessing these alternative strategies using
the three criteria (suitability, feasibility, acceptability), we suggested that the company should:
Use retained profit to improve production capacity (food processing SBU), export to
more countries in order to increase the stable source of income.
Press on market research in order to adapt well with market trends; always sell the most
desired products in the market.
Ask the parent company for capital to take over weaker competitors to increase
geographical coverage and market share.
We hope these recommendations prove helpful for the company. We are looking forward
to making further contributions for the company.
17. References
BigC corporation (n.d.). “Big C’s achievement”. [Online] Available at:
<http://www.bigc.vn/Gioithieu/Thanhtich/tabid/90/y/2012/h/award/language/enUS/Default.aspx> Last accessed May 2012
BigC corporation (n.d.). “Big C’s vision, mission and values”. [Online] Available at:
<http://www.bigc.vn/Gioithieu/Giatridoanhnghiep/tabid/99/language/vi-VN/Default.aspx> Last
accessed May 2012
Business Essentials – Business Strategy – Supporting HND/HNC and foundation degrees
course book, BPP Learning media, UK.
Nguyen, T.N.M. (2009). “Business strategy formation for Co-opmart Supermarket Chain
until 2015”. Hochiminh City University of Economics.
Simister, P. (2011). “SPACE Analysis – Strategic Position and Action Evaluation
Matrix”. [Online] Available at: < http://www.differentiateyourbusiness.co.uk/space-analysisstrategic-position-and-action-evaluation-matrix> Last accessed May 2012
Simister, P. (2011). “Conservative Strategy In The SPACE Matrix”. [Online] Available
at: < http://www.differentiateyourbusiness.co.uk/conservative-strategy-in-the-space-matrix> Last
accessed May 2012