JHT2 Task 1 Competitive Shoes
JHT2 – Strategic Management
Competitive Shoes
Simulation Game
Generic Competitive Strategy
There are many strategies that organizations can incorporate in today’s business environment. An organization can decide to take on a low-cost provider strategy, a focused low-cost strategy, broad differentiation strategy, focused differentiation strategy, and/or a best-cost provider strategy. While all of them have their own unique features and can offer a competitive advantage over its rivals, Competitive Shoes, Inc. decided to incorporate the best-cost strategy into its organization in order to compete against it rivals. By incorporating the best-cost strategy into its organization, Competitive Shoes Inc. felt that they could stay competitive in the market by giving their customers more value for the money. The best-cost provider strategy incorporates fundamentals of differentiation and low-cost strategies in a distinctive way. It takes on the middle road tactic by looking for low-cost advantages and differentiation benefits, while making sure to appeal to the broad market as a whole and place some emphasizes in the narrow niche markets that surround them (low-end products and high-end products). Best-Cost provider strategies are a hybrid of low-cost provider and differentiation strategies that aim at providing desired quality/features/performance/service attributes while beating rivals on price (Thompson, Strickland, and Gamble, 2012). By doing this, Competitive Shoes is able to focus on value-conscious buyers that are looking for quality products at a discounted price. The reason why Competitive Shoes elected to take this strategy was because they felt that their rivals were either going to take on the low-cost approach and sell their shoes at a lower price than the rest of the market or they were going to create high end shoes that only a narrow niche market could afford. History has shown us that when start-up companies first try to make their mark in
Competitive Shoes
Simulation Game
Generic Competitive Strategy
There are many strategies that organizations can incorporate in today’s business environment. An organization can decide to take on a low-cost provider strategy, a focused low-cost strategy, broad differentiation strategy, focused differentiation strategy, and/or a best-cost provider strategy. While all of them have their own unique features and can offer a competitive advantage over its rivals, Competitive Shoes, Inc. decided to incorporate the best-cost strategy into its organization in order to compete against it rivals. By incorporating the best-cost strategy into its organization, Competitive Shoes Inc. felt that they could stay competitive in the market by giving their customers more value for the money. The best-cost provider strategy incorporates fundamentals of differentiation and low-cost strategies in a distinctive way. It takes on the middle road tactic by looking for low-cost advantages and differentiation benefits, while making sure to appeal to the broad market as a whole and place some emphasizes in the narrow niche markets that surround them (low-end products and high-end products). Best-Cost provider strategies are a hybrid of low-cost provider and differentiation strategies that aim at providing desired quality/features/performance/service attributes while beating rivals on price (Thompson, Strickland, and Gamble, 2012). By doing this, Competitive Shoes is able to focus on value-conscious buyers that are looking for quality products at a discounted price. The reason why Competitive Shoes elected to take this strategy was because they felt that their rivals were either going to take on the low-cost approach and sell their shoes at a lower price than the rest of the market or they were going to create high end shoes that only a narrow niche market could afford. History has shown us that when start-up companies first try to make their mark in