Unit 4 Health And Social Care Industry Analysis
WHAT ARE THE KEY AREAS THAT A MARKETER SHOULD STUDY AND CONTRAST IN ANY COMPETITIVE ENVIRONMENT
Marketing is above all satisfying customer needs and as competition grows fiercer and fiercer, understanding customers today is crucial; but that is not enough. Under the marketing concept, companies try to gain competitive advantage by satisfying target consumer needs better than competitors do, and in achieving this, ensure their own survival.
So, the marketer is bound to face many challenges as new companies and new improved products make their entry on the market, the availability of new services brought about by latest technology and the price reduction entailed in the process. The battle for conquering new …show more content…
The three generic strategies (cost leadership, differentiation and focus as discussed earlier) that can be implemented at the business unit level to create a competitive advantage. The proper generic strategy will position the firm to leverage its strengths and defend against the adverse effects of the five forces.
Having seen the strategies to counter the negative effects of the five forces model, the marketer must now consider the limitation of this same five forces model.
• Care must be taken not to under estimate or underemphasize the importance of the existing strengths of the organization, • It does not cope with synergies and interdependencies within the portfolio of large corporations, • From a more theoretical perspective the model does not addressed the possibility that an industry could be attractive because certain companies are in it, • Some claim that environments which are characterized by rapid, systemic and radical change require more flexible, dynamic or emergent approaches to strategy formulation, • Sometimes it may be possible to create completely new markets instead of selecting from existing
Marketing is above all satisfying customer needs and as competition grows fiercer and fiercer, understanding customers today is crucial; but that is not enough. Under the marketing concept, companies try to gain competitive advantage by satisfying target consumer needs better than competitors do, and in achieving this, ensure their own survival.
So, the marketer is bound to face many challenges as new companies and new improved products make their entry on the market, the availability of new services brought about by latest technology and the price reduction entailed in the process. The battle for conquering new …show more content…
The three generic strategies (cost leadership, differentiation and focus as discussed earlier) that can be implemented at the business unit level to create a competitive advantage. The proper generic strategy will position the firm to leverage its strengths and defend against the adverse effects of the five forces.
Having seen the strategies to counter the negative effects of the five forces model, the marketer must now consider the limitation of this same five forces model.
• Care must be taken not to under estimate or underemphasize the importance of the existing strengths of the organization, • It does not cope with synergies and interdependencies within the portfolio of large corporations, • From a more theoretical perspective the model does not addressed the possibility that an industry could be attractive because certain companies are in it, • Some claim that environments which are characterized by rapid, systemic and radical change require more flexible, dynamic or emergent approaches to strategy formulation, • Sometimes it may be possible to create completely new markets instead of selecting from existing