situation that affect a firm’s success in acquiring needed resources or in profitably marketing its…
Through keen managerial strategy our company was able to establish business overseas before our competitors. Pioneering the overseas market allowed us to be able to get our product to as many dealers internationally faster than our competitors. This has allowed us to establish an international reputation which is a main point of emphasis when companies purchases new machinery.…
• Economies of scope: Use same raw and semi finished materials and intermediate production processes to make a variety of different products (move into related markets)…
· Explain why the process or procedure produces a competitive product or service in the domestic and global markets.…
The five forces that that are important for an industry and companies involved are a) Competition b) Buyers c) Substitutes d) Suppliers and e) Compliments. The Chainsaw industry is segmented by customer bases namely professionals, farmer and casual users. These customer segments are differentiated by the cubic-inch displacements. Pro users require 4.5 or greater, farmers require 2.7 – 4.5 inches and casual users require about 2.7 inches. The industry is also segment by the distribution channels that each company uses in this case servicing dealers, home centers, department stores, hardware stores and catalog sales. Servicing dealers carry a broad line of chainsaws and also offer servicing and repairs for their products. These complements to the chainsaw increase the value of the product to the customers they serve. These servicing dealers also align themselves with 1 or 2 manufacturers which gives them a higher buying power therefore increasing the value required to compete. Also cooperative advertising by the dealers and manufacturers offers a relational capability by the sharing of resources. In contrast retail channels like home centers do not offer servicing and also offered limited accessories and department stores didn’t carry high quality chainsaws because of the difficulty in selling them. Hardware stores use strategic buying groups to purchase from various manufacturers this strategy gives them a higher buyer power and the ability to dictate market prices. Catalog sales provide to the mass casual market and therefore they carry very limited lines of low priced chainsaws, they don’t provide any servicing and have limited accessories.…
• Technology allowed more production and with more production allowed cost to go down making it hard to compete with.…
Josiah Wedgewood’s competitive advantage comes from his innovations of marketing and the way he set his focus on the demand side vs. other industrial manufacturer who mostly focused on the supply side of the production. He took full advantage of being first mover to serve the growing middle class population. Wedgewood understood the importance of differentiation. He developed cream ware product with a single pale color that closely resembled porcelain. Cream ware line was cheap to produce, more durable than porcelain, easy to manufacture, and represented high quality. Wedgewood was first mover in inventing marketing technique and was able to effectively communicate with his customer and knew how to differentiate his product from other competitors. He was first in his industry to use endorsement to promote and launch new product we can see some of the examples in his use of title as “potter to majesty” or naming new set of flowerpots after the Duchess of Devonshire. Usually after a well-known commission from the high-end customer he would use their endorsements to advertise it in a newspaper to target a bigger market of middle class and generate more sales. He created demand by displaying his product in showrooms before sending the pieces to customers. For example the big order from Russian empress Catherine was displayed in London showroom and admired by many aristocrat before it was sent to Russia. Wedgewood had a skill to create sustainable demand for his target market some of the examples are: 1) If one of his product line became saturated in the market he discontinued the line for a period of time to create more demand for it before he bring it back at a later time. 2) He impressed his name on every piece of product not only he discouraged forgery he also set his product as a high quality pottery products and created brand image. 3) Wedgewood also mastered the premium effect of pricing. He noticed his wealthy client are willing to pay…
Strengths of the company were its market share and production process, which created great economies of scale and allow extremely efficient and low cost production. Even though it was subject to a business with highly seasonal sales, concentrating the sales in the middle six months of the year and giving moderate discounts (for early delivery) could help get around most of the risks.…
* In the North American market, saturation was an impending concern. In terms of diversification into other types of products such as complex cirques, spas and so on, Gagnon (management team) mentioned…
Technology- Technology is integrated to support all primary activities. ERP enables flow of information across department, so timely and strategic decisions are made.…
The primary situation in the Saxonville Sausage Company case was their need to increase the awareness, customer base, and sales with their Italian Sausage products. The flat sales they were experiencing in their breakfast sausage and bratwurst sales influenced the company to try and expand the market they were offering their Italian Sausage products to. The company was unsure of the way they were positioning their product and before launching a new marketing strategy to a possibly new market they…
Growth – as volume grows, competitors may enter the growing market. Keeping up with demand could prove to be the main operations..…
1. growth strategies (such as diversification, product development, market penetration or market development, Ansoff’s Matrix)…
In addition to economy of scale, product differentiation is another entrance/ exit factor in any major industry. There are many…
The conditions in the firm’s industry have a significant effect on the success of the firm. The demand increases in industries that sell a product that is highly demanded by consumers. Likewise, the demand will decrease in industries that have low demand for their products.…