Innovative competitive advantages in business notesAylya B.S
This paper is based on the role of innovation and competition in business which changed the trend of business. That made harder to sustain in an environment for a business man to be stable and requires constant management and analysis of the business, competitors, customers etc.
Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
Innovative competitive advantages in business notesAylya B.S
This paper is based on the role of innovation and competition in business which changed the trend of business. That made harder to sustain in an environment for a business man to be stable and requires constant management and analysis of the business, competitors, customers etc.
Strategic Purpose
Business Level Strategy
Corporate Level and International Strategy
Strategy Direction and Methods of Developments
Organizing for Strategy Success
Enabling Strategy Success
Managing Strategic Change
Understanding Strategy Development
Key Learning Points
STRATEGY, STRATEGIC PLANNING, STRATEGIC DECISION, STRATEGIC CAPABILITY, OPERATIONS MANAGEMENT, ROLE OF OPERATIONS IN AN ORGANIZATION, SCOPE OF OPERATIONS MANAGEMENT, OPERATIONS STRATEGY, DIFFERENCES BETWEEN STRATEGIC, ADMINISTRATIVE AND OPERATIONAL DECISIONS, BUSINESS ADMINISTRATION, MANAGEMENT SCIENCE, EDUCATION AND LEARNING,
Strategy formulation is the process of using available knowledge to document the intended direction of a business and the actionable steps to reach its goals.
This process is used for resource allocation, prioritization, organization-wide alignment, and validation of business goals.
A successful strategy can allow your organization to share one clear vision, catch biases by examining the reasoning behind goals, and track performance with measurable key performance indicators (KPIs).
Entrepreneur 4: Business Strategies & Rapid Growth StrategiesBernard Leong
The 4th lecture focus on business strategy and models, rapid growth strategies (franchising, mergers & acquisitions), and an introduction to Moore's "Crossing the Chasm", Gartner's Hype Cycle and Porter's 5 Forces.
STRATEGY, STRATEGIC PLANNING, STRATEGIC DECISION, STRATEGIC CAPABILITY, OPERATIONS MANAGEMENT, ROLE OF OPERATIONS IN AN ORGANIZATION, SCOPE OF OPERATIONS MANAGEMENT, OPERATIONS STRATEGY, DIFFERENCES BETWEEN STRATEGIC, ADMINISTRATIVE AND OPERATIONAL DECISIONS, BUSINESS ADMINISTRATION, MANAGEMENT SCIENCE, EDUCATION AND LEARNING,
Strategy formulation is the process of using available knowledge to document the intended direction of a business and the actionable steps to reach its goals.
This process is used for resource allocation, prioritization, organization-wide alignment, and validation of business goals.
A successful strategy can allow your organization to share one clear vision, catch biases by examining the reasoning behind goals, and track performance with measurable key performance indicators (KPIs).
Entrepreneur 4: Business Strategies & Rapid Growth StrategiesBernard Leong
The 4th lecture focus on business strategy and models, rapid growth strategies (franchising, mergers & acquisitions), and an introduction to Moore's "Crossing the Chasm", Gartner's Hype Cycle and Porter's 5 Forces.
In this lesson you learned the three fundamental elements of strategic management. You learned that a company must understand it strategic position relative to its competitors in order to determine its strategic choices before turning its strategy into action.
Marketing represents the boundary between the marketplace and the company, and knowledge of current & emerging happenings in the marketplace is extremely important in any strategic planning exercise.
1.1Getting StartedBefore discussing strategy itself, let us begi.docxchristiandean12115
1.1Getting Started
Before discussing strategy itself, let us begin by discussing the context of strategy. How does strategy fit within the general field of business? How does it compare to the other disciplines of business?
Many experts would argue (depending on the industry) that marketing, finance, and/or human resources are most important to the success of the company. How can a business survive, they argue, without adequate human capital, a solid marketing campaign and money for daily operations? However, business strategy is somewhat different from these disciplines because strategy is more holistic than other areas of business. Business strategy touches every other area of business and a business can use any company resource to further its overall strategy. Strategy is at least as important as other areas of business because it encompasses and integrates with the other business disciplines.
In other words, effective strategists will use the organization's accounting system, operations, information systems, human capital, marketing, and any other available tool as part of its strategy. Used appropriately, strategy will use every discipline within the organization to accomplish its organizational goals.1.2What is Strategy?
Strategy is the method that an organization uses to reach its goals. According to this definition, strategy is fundamentally a broad term. In the right context, almost any plan of action can be considered an organization’s strategy. Most academic papers on strategy, as well as this book, focus on competitive strategy. Competitive strategy is the way that an organization is going to compete in its industry. However, the tools and techniques of competitive strategy can be adapted to an organization’s quest for other goals.
Since competitive strategy (by definition) is focused on competition, competitive strategy is often expressed in terms of sports, war, history, survival, and board games. This terminology is transferred to the field of strategy as a whole. For example, when a manager states, "What is our game plan?" the manager is asking for clarification about the organization's strategy. When an organization ‘crafts' or builds its strategy, it is specifically choosing the actions it will take in the marketplace, including how it is going to compete with and outperform other organizations.
Stakeholders can often observe an organization's chosen strategy by evaluating what the firm does in the marketplace and asking questions such as the following:
· What industry does the firm operate in?
· What products and/or services does the firm market and sell? Does the firm take an offensive or defensive position?
· What is the firm's target market?
· Does the firm invest in research and development? Why or why not?
· What product or services does the firm offer that are different from competitors?
· What makes the firm successful or unsuccessful?
· Where does the majority of the firm's money come from?
· What type of employees.
The 21st century has proven to be as economically tumultuous as the two preceding centuries. Between a pandemic, wars, technological developments, progress in civil rights, and breakthroughs in science and medicine, the old order has been swept away, sometimes giving way to freer forms of governing and sometimes not. This period has seen multiple financial crises striking nations, regions, and—in the case of the Great Recession—the entire global economy. All financial crises share certain characteristics, but each tells its own unique story with its own unique lessons for the future. Due to these lessons we were able to experience a smoothened run of economy during the covid-19 syndemic that halted the logistics industry at once and created bottle-necks, hurdles and even complete shut-downs in other sectors while creating a need of overtime for front-line workers who are fighting against the virus on the forefront.
Cpec will galvanize industrailization and employment in pakistanAyesha Majid
China-Pakistan Economic Corridor is a framework of regional
connectivity. Through CPEC China aims to connect its eastern side through
Kashgar to the warm waters of Arabian Sea through Pakistan as it will be
shorter and safer for china to transport goods via this route than through the
china sea to the Arabian Peninsula and surrounding areas. CPEC will not only
benefit China and Pakistan but will have positive impact on Iran, Afghanistan,
India, Central Asian Republics, and the region. Through the enhancement of
geographical linkages having improved road, rail and air transportation system
with frequent and free exchanges of growth and people to people contact,
enhancing understanding through academic, cultural and regional knowledge
and culture, activity of higher volume of flow of trade and businesses, producing
and moving energy to have more optimal businesses and enhancement of cooperation by the win-win model will result in well connected, integrated region
of shared destiny, harmony and development.
Infrastructural issues being addressed in the energy sector of pakistanAyesha Majid
Pakistan is facing key challenges and issues in
the development of social sector mainly in
education, health, energy, security and the
environment due to lack of policy framework,
lack of governance, lack of technological
advancement, unstable strategies, lack of
leadership, poor project management, lack of
innovation and inefficient utilization of
resources. Pakistan’s world ranking as per GCI
is as follows infrastructure (121st)—particularly
for electricity (135th)—remains in a dire state.
Moreover, the country displays some of the
lowest education enrolment rates in the world
and basic education is poor (137th).
An overview of Mercantile Law in PakistanAyesha Majid
This overview of business laws of Pakistan is a very brief description of common forms of businesses adopted by private and public sector investors in Pakistan. An attempt has also been made to outline general requirements and regulatory regimes for each of these forms of businesses in Pakistan.
Microfinance service in pakistan over the decadeAyesha Majid
Pakistan has made considerable developments in Microfinance though a late starter in this
industry. The sector formally started to develop from 1999 although; semiformal sectors since the 1980s
are providing micro-credit in Pakistan. Including Non-Government Organizations (NGOs) and Rural
Support Programs (RSPs). Subsidies have played an important role in the growth and promotion of the
microfinance sector’s growth phase. Now the sector is in its maturity phase. MFBs funding structure
suggests lack of own-resource base through deposits mobilization. For long-term sustainability, Financial
Self Sufficiency is vitally important for microfinance institutions.
Presentation: Philip Morris (Pakistan) Limited: Business Strategy Ayesha Majid
Phillip Morris international is one of the leading cigarette manufacturing companies in the world
with the current share price of $73.78 (Philip Morris International). The organization is known
for the making of cigarettes, other tobacco products and nicotine-containing products in
countries outside of the United States. Its portfolio comprises of both global and local brands.
Philip Morris (Pakistan) Limited (“PMPKL”), is a public limited company and is listed on the
Pakistan Stock Exchange. PMPKL is affiliated with Philip Morris International (“PMI”), which
is listed on the New York Stock Exchange and has operational Headquarters in Lausanne and
Corporate Headquarters in New York. The company is one of the largest manufacturers of
cigarettes in Pakistan and contributes in many charitable projects where they source and
manufacture their tobacco. Some of these projects are provision of economic opportunities,
women empowerment and making education available. It currently has 739 employees in 15
offices with 1 cigarette factory and 1 tobacco leaf plant in Pakistan (PMI - Pakistan). Philip Morris Pakistan follows the business model of Profit Pyramid Model.
Philip Morris (Pakistan) Limited: Business Strategy Ayesha Majid
Phillip Morris international is one of the leading cigarette manufacturing companies in the world
with the current share price of $73.78 (Philip Morris International). The organization is known
for the making of cigarettes, other tobacco products and nicotine-containing products in
countries outside of the United States. Its portfolio comprises of both global and local brands.
Philip Morris (Pakistan) Limited (“PMPKL”), is a public limited company and is listed on the
Pakistan Stock Exchange. PMPKL is affiliated with Philip Morris International (“PMI”), which
is listed on the New York Stock Exchange and has operational Headquarters in Lausanne and
Corporate Headquarters in New York. The company is one of the largest manufacturers of
cigarettes in Pakistan and contributes in many charitable projects where they source and
manufacture their tobacco. Some of these projects are provision of economic opportunities,
women empowerment and making education available. It currently has 739 employees in 15
offices with 1 cigarette factory and 1 tobacco leaf plant in Pakistan (PMI - Pakistan). Philip Morris Pakistan follows the business model of Profit Pyramid Model.
Apple INC.: Managing a Global Supply ChainAyesha Majid
As part of her analysis of Apple’s stock, she wanted to look at the company’s supply chain to see if she could gain some insight into the pros and cons of Apple as a key holding in BXE’s fund. When. Apple Computer was founded on April 1, 1976, by Steve Jobs, Steve Wozniak and Mike Markkula to manufacture and distribute desktop computers.
While claiming to learn from the Chinese way of handling the crisis, there is no on-ground action in Pakistan that supports the claim. The Prime Minister denies national lock down despite the fact that without proper lock-down the virus spread trajectory can be rapid resulting in collapse of national health facilities which can bring the national economy to a halt.
Pakistan is an important maritime state in the Indian Ocean blessed with approximately 1,050 km long coastline and the Exclusive Economic Zone covering about 240,000 sq. The vast coastline of Pakistan naturally offers the option of deep sea water ports which means a much bigger volume of ship could be stationed along the coastline.
Factors Affecting Consumer Purchase Intention When Buying Toyota Corolla in P...Ayesha Majid
The economy of Pakistan and the consistent increase in dollar rates has taken a huge toll on the sales of the multinational manufacturer. Focus group analysis show that majority of the people preferred Honda over Toyota due to several reasons including near to none change in the designs of Toyota Corolla’s variants. Another factor was that Toyota was seen more as a car for the rural areas which was best suited for a rugged terrain. Although the general perception is that Toyota has better car suspension and fuel efficiency, people would still prefer Honda and other Japanese cars. Respondents said that advertisements played a crucial role but they do not compel the customer to buy a product like a car, there are other factors that are taken under consideration. Pakwheels and olx were the first two online platforms that they mentioned when asked about their go to online source. Family and friends advice played a major role in deciding which car to buy. According to the research conducted by our group through questionnaire, a regression was done and seen that the general perception that a reduction in prices will increase sales was not true because people usually associate low prices with low quality products. According to the regression, only advertisement and product have a significant result. All the variables are positively correlated with each other and less than one and positive indicating a formative relationship to the dependent variable. Branding has an insignificant positive relationship with purchase intention because consumers are only considering three competitors; Honda, Suzuki and Japanese cars.
Factors Affecting Consumer's Purchase Intention When Buying Toyota Corolla in...Ayesha Majid
Toyota is a name almost everyone is familiar with. It has been the market leader in automobiles specially hybrid and electric automobiles. It has been operational in Pakistan since 1989.
Toyota is a one of a kind Japanese multinational automotive manufacturer. As of September 2018, it was the sixth largest company in the world in terms of revenue. The economic conditions however have not been very favorable for the automotive industry. The economy of Pakistan and the consistent increase in dollar rates has taken a huge toll on the
sales of the multinational manufacturer. Focus group analysis show that majority of the people preferred Honda over Toyota due to several reasons including near to none change in the designs of Toyota Corolla’s variants.
Another factor was that Toyota was seen more as a car for the rural areas which was best suited for a rugged terrain. Although the general perception is that Toyota has better car suspension
and fuel efficiency, people would still prefer Honda and other Japanese cars. Respondents said that advertisements played a crucial role but they do not compel the customer to buy a product like a car, there are other factors that are taken under consideration. Pakwheels and olx were the first two online platforms that they mentioned when asked about their go to online source. Family and friends advice played a major role in deciding which car to buy. According to the research conducted by our group through questionnaire, a regression was done
and seen that the general perception that a reduction in prices will increase sales was not true because people usually associate low prices with low quality products. According to the regression, only advertisement and product have a significant result. All the variables are positively correlated with each other and less than one and positive indicating a formative relationship to the dependent variable. Branding has an insignificant positive relationship with purchase intention because consumers are only considering three competitors; Honda, Suzuki and Japanese cars.
The British Rule's lasting sway on lives of PakistanisAyesha Majid
The British rule still has a sway on us and we still unconsciously see them as our masters/ or a better race than us in terms of looks, language, traditions clothing style and hobbies. Though the Britishers only enforced their norms through law and schooling but its impact was long-lasting and deep-rooted amongst the young natives.the current architectural format of Pakistani buildings is inspired from British architecture as opposed to local designs and aesthetics specially regarding room aeration and lightening. Many of the botanical flowers and ferns that we see in Pakistan were introduced by Britishers which were than made part of the gardening aesthetics by the then influential Pakistanis to show-off their civilised family background.
Reko-Diq and Saindaq Reserves Similarities and DifferencesAyesha Majid
On Pakistan's side reserves of Copper and Gold were discovered in district Chagai at Saindak and Reko Diq. Experts say that the deposits of Gold at Saindak and Reko Diq are of finest quality.
The Basel III regulations are devised to mitigate damage to the economy caused by banks that take on excess risk. This third instalment of the Basel Accords was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08. It is aimed at improving the banking sector's ability to deal with financial stress, improve risk management, and strengthen the banks' transparency. It is part of the continuous effort to enhance the banking regulatory framework and builds on the Basel I and Basel II documents.
An Overview of Corporate law in PakistanAyesha Majid
In context of this article, law is a system of rules that lays down standards to which we ought to conform originated from legal rule, moral rule and social convention. It is a system recognised by a particular country or community for regulating the actions of its members which are enforced by the imposition of penalties. Law is a fundamental business discipline. Its study allows to develop a wider perspective on both the business and regulatory landscape and specialised expertise that will not only enrich our business career but will also lay the foundations for successful comprehension of the business environment.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
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Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Sustaining Competitive Advantage over Rivals
1. Ayesha Majid
RESEARCH BY AYESHA MAJID
SUSTAINING COMPETITIVE
ADVANTAGE OVER RIVALS
HOW DOES THE STRATEGIC TRADE-OFFS AND FITS IN ADDITION TO THE
STRATEGIC POSITIONING FACILITATE A FIRM TO SUSTAIN ITS COMPETITIVE
ADVANTAGE OVER RIVALS?
2. 1
HOW DOES THE STRATEGIC TRADE-OFFS AND FITS IN ADDITION TO THE STRATEGIC
POSITIONING FACILITATE A FIRM TO SUSTAIN ITS COMPETITIVE ADVANTAGE OVER
RIVALS?
INTRODUCTION
Strategy is a creation of unique and valuable position, involving a different set of activities. It
primarily involves three different elements i.e Strategic positioning, Strategic fit, and strategic
trade off. Strategy involves in choosing what to do or not as firms have scarce resources there
will be tradeoffs, as this drives strategy. Positioning choices determines not only which
activities a company will perform and how will it configure individual activities. Strategic
positioning consists of the core product and its uniqueness.
Strategy involves creating “fit” among a company’s activities. Fit has to do with how the
activities in the value chain interact and reinforce one another. Fit drives both competitive
advantage and sustainability: when activities mutually reinforce each other, competitors can’t
easily imitate them. When using the value chain as a framework, it’s important to remember
that all the activities in the chain are linked and interdependent. Positioning choices
determine not only what to do and how to do it, but also how everything fits together. While
operational effectiveness is about achieving excellence in each activity, strategy is
about combining activities.
You can enhance uniqueness and amplify trade-offs when activities combine to reinforce your
strategic position. If you make premium technology products, like Apple, you become even
more distinctive when you offer a sophisticated sales force and a marketing approach that
emphasizes specialized customer assistance and support.
According to Porter, a sustainable advantage cannot be guaranteed by simply choosing a
unique position, as competitors will imitate a valuable position in one of the two following
ways:
1. A competitor can choose to reposition itself to match the superior performer.
2. A competitor can seek to match the benefits of a successful position while maintaining
its existing position (known as straddling).
Thus, in order for a strategic position to be sustainable there must be trade-offs with other
positions. "A trade-off means that more of one thing necessitates less of another
There are three types of fit, which are not mutually exclusive:
1. First-order fit: Simple consistency between each activity (function) and the overall
strategy. Consistency ensures that the competitive advantages of activities cumulate
and do not erode or cancel themselves out. Further, consistency makes it easier to
communicate the strategy to customers, employees, and shareholders, and improves
implementation through single-mindedness in the corporation.
2. Second-order fit: Occurs when activities are reinforcing.
3. Third-order fit: Goes beyond activity reinforcement to what Porter refers to as
optimization of effort. Coordination and information exchange across activities to
eliminate redundancy and minimize wasted effort are the most basic types of effort
optimization.
3. 2
In all three types of fit, the whole matters more than any individual part. Competitive
advantage stems from the activities of the entire system. The fit among activities substantially
reduces cost or increases differentiation. Moreover, according to Porter, companies should
think in terms of themes that pervade many activities (i.e., low cost) instead of specifying
individual strengths, core competencies or critical resources, as strengths cut across many
functions, and one strength blends into others.
Strategic fit is fundamental not only to competitive advantage but also to the sustainability of
that advantage because it is harder for a competitor to match an array of interlocked activities
than it is merely to replicate an individual activity. Thus, "positions built on systems of
activities are far more sustainable than those built on individual activities”.
Strategic fit consists of decisions regarding resources and what to do and what not to do.
Sustainable competitive advantage can be achieved by combing strategic fit for e.g. Dell wants
to maintain low inventory and high customization as a result it makes most of its product on
order bases and does not keep any inventory with itself. strategic fit expresses the degree to
which an organization is matching its resources and capabilities with the opportunities in the
external environment and how a firm’s activities interact with and reinforce with one another.
Example of it would be Toyota as it offers a very strategically placed Supply chain that
operates accordingly with its function of assembling the cars. Thus, for creating a fit among
company’s activities. Another example is, Shan Foods sometimes aligns all of its activities with
a low-cost strategy since it is not very expensive and the masses can buy it. It also drives the
company’s competitive advantage and its sustainability.
Strategic fit is related to the Resource-based view of the firm which suggests that the key to
profitability is not only through positioning and industry selection but rather through an
internal focus which seeks to utilize the unique characteristics of the company's portfolio of
resources and capabilities. using a single sales force for all related products rather than
separate sales forces for each business, advertising related products rather than separate
sales forces for each business.
Fits has to do with the ways a company’s activities interact and reinforce one another e.g
Vanguard Group aligns all of its activities with a low-cost strategy. It distributes the funds
directly to consumers and minimizes portfolio turnover. Fits, hence derive competitive
advantage. Coming to tradeoff, some competitive activities are incompatible thus, gains in
one area can be achieved only at the expense of others. E.g. Neutrogena soap is positioned
more as medicinal product than a cleansing agent. Hence, all these three elements lead to
the formulation of a strategy that is then used for differentiating the strategy from
competitors and gain a sustainable competitive advantage. Telenor and Jazz are other
examples that have outperformed the market competitors. The three elements form the basis
of a strategy and since they all reinforce each other and work in accordance of each other,
the sustainable competitive advantage can only be gained strategy is based collectively on
them rather than just focusing on any individual element in particular.
Strategic trade off occurs when the activities of the firm are incompatible. It means that when
a company gains an advantage in one specific area it might gain disadvantage in the other
area. The strategic Fit involves the company’s activities as how much compatible they are and
add value to the final process.
4. 3
Lastly, Strategic tradeoffs are the decisions and directions in accordance with the fits and the
uniqueness, as mentioned earlier. Strategic tradeoff is very important because they are the
means to differentiate. If one company is taking advantage and lead through one of its
offering or specific function then the other company might be using any other means to
compete against it. Strategic trade provide the firms with unique positioning. For example,
Apple iPhone has been well known for its software and security and that is what they have
been working on in order to gain advantage over their competitors whereas Samsung has not
focused that much on its security but it provides the versatility and a very user oriented
software which enables its users to use various application.
In modern day these trade-offs and fits are actually a key to achieve the dual advantage such
as low cost and innovation, the speed of responsiveness.
Strategic position led by the operation effectives is a road towards achieving the right
competitive advantage. The decision making about the trade-off and achieving the right fit in
order to obtain and maintain operational effective is one dimension. Getting the on to the
right mark on the productivity frontier is the key to the ideal strategic positioning. A
sustainable strategic positing have its own trade trade-offs or we can say it require some
essential trade off, for this the firm need to choose the right fit. This process will help in
creating a differentiating factor which will lead to a new competitive advantage. Example; Big
companies like Toyota and Zara, which our involved in mass customization and getting the
supply chain advantage to reach the full competitive advantage.
Strategic focus is a common characteristic across successful organizations. Strategic focus is
seen when an organization is very clear about its mission and vision and has a coherent, well-
articulated strategy for achieving those. For example, when an insurance company specializes
in ‘crop insurance’ only or a bank has concentrated on ‘housebuilding loans’, we can say that
they are pursuing focus strategy.
Strategic positioning reflects choices a company makes about the kind of value it will create
and how that value will be created differently than rivals. Usually, with pricing positioning
strategy, a brand aims to be the cheapest or one of the cheapest in the market, and value
becomes their position. For example, Supermarket chains often have a house brand with very
low-price products in many product categories.
A sustainable strategic position requires trade-offs. Choosing a unique position, however, is
not enough to guarantee a sustainable advantage. But a strategic position is not sustainable
unless there are trade-offs with other positions. Trade-offs occurs when activities are
incompatible. Simply put, a trade-off means that more of one thing necessitates less of
another. An airline can choose to serve meals – adding cost and slowing turnaround time at
the gate – or it can choose not to, but it cannot do both without bearing major inefficiencies.
A valuable position will attract imitation by incumbents, who are likely to copy it in one of two
ways. First, a competitor can reposition itself to match the superior performer. J.C. Penney,
for instance, has been repositioning itself from a Sears clone to a more upscale, fashion-
oriented, soft-goods retailer.
A second and far more common type of imitation is straddling. The straddle seeks to match
the benefits of a successful position while maintaining its existing position. It grafts new
5. 4
features, services, or technologies onto the activities it already performs. Any airline can buy
the same planes, lease the gates, and match the menus and ticketing and baggage handling
services offered by other airlines.
Trade-offs creates the need for choice and protect against repositioners and straddlers.
Consider Neutrogena soap. Neutrogena Corporation’s variety-based positioning is built on a
“kind to the skin,” residue-free soap formulated for pH balance. With a large detail force
calling on dermatologists, Neutrogena’s marketing strategy looks more like a drug company’s
than a soap maker. It advertises in medical journals, sends direct mail to doctors, attends
medical conferences, and performs research at its own Skincare Institute. To reinforce its
positioning, Neutrogena originally focused its distribution on drugstores and avoided price
promotions.
Also, big companies such as Apple and Samsung are more aligned with their objectives only
because of the fact that they have achieved the strategic fit. They know what they are offering
and are continuously improving and innovating in that area.
Companies who lack synergy and do not have any ground are more likely to lose to their
competitors because they do not focus on one thing but rather are all over the place.
Starbucks is another example of a company who is doing well and is known all over the world
just because it has achieved a competitive advantage over other coffee shops by creating a
personalized environment where everyone feels included.
CONCLUSION
As we already know that strategy is when a firm establishes a unique and valuable position in
the market and its competitors. So, understandably when a firm opt for a strategic position
is also has to have certain trade-offs in which it must choose what to do and what not to do.
In order to provide quality services that are distinctly recognizable to the consumer the
organization has to decide on which one strategy it is going to pursue that is distinctly
different from the others. Thus, to position itself according to the Ansoff matrix the
organization may only pursue one strategy to facilitate its positioning and to differentiate it
from the strategy of its rivals. One example of such strategy is the strategy of companies like
apple. Apple does not simply adopt new and innovative technology until and unless it has
finessed over the technology in detail. For example, apple currently does not use the in display
finger print tech as all major players are doing simply because the tech is new. Thus apples
strategy is to make sure whatever it is providing to the consumer is of top quality and doing
that means trading off on which new tech apple will pursue and which tech it wont.
Some competitive activities are incompatible which is why gains in one area can be achieved
and the other area has to be forgone. An example is of Apple, when Apple chooses to make
highly innovative and expensive Iphone which only a certain type of market can afford to buy,
it very well knows that is has to trade-off the masses who cannot buy such an expensive
phone. But this is how Apple has positioned its products in the market. By contrast vivo
phones although innovative to some extent are still much cheaper and can usually be bought
by the masses because the price range is not as high as Apple’s Iphones. So, each company
has smartly positioned itself to create a strategic position and differentiate themselves
compared to rival brands.
6. 5
In order to make the strategic trade off a company must be able make judgements between
its choices and the no of resources it aims to require. Moreover, in order to achieve the fit, it
must be able to select the resources to sustain the competitive advantages.
Companies who achieve strategic fit and strategic positioning are more capable than their
rivals as they have a unique selling point that they can focus on and they are more able to
align their objectives and goals and have a smaller or no gap in what their brand promise is
and what they are selling. Jazz acquired Warid and have achieved a strategic fit by being the
top telecommunication network in the country, and this is exactly what one company should
do to make space for themselves in a highly competitive market they have to engage in
tradeoffs.