Week 1
How can one tell a winning strategy from a strategy that is mediocre or a loser? Give examples and details and always cite your sources of information.
A company strategy is its action plan for outperforming its competitors and achieving superior profitability. The objective of a well-crafted strategy is not merely temporary competitive success and profits in the short run, but rather the sort of lasting success that can support growth and secure the company’s future over the long term. (Thompson, Peteraf, Gamble & Strickland, 4)
As a winning strategy, first of all, it should fit the company’s situation, to qualify as a winner, a strategy has to be well matched to industry and competitive conditions, a company’s best market opportunities, and other pertinent aspects of the business environment in which the company operates. Second, a winning strategy need to help company achieve a sustainable competitive advantage. Third, a winning strategy can produce good company performance which include two parts: competitive strength and market standing and profitability and financial strength. (Thompson, Peteraf, Gamble & Strickland, 12)
KFC in China is a typical case about winning strategy. The first KFC open in Beijing in 1987, until 2012 there were more than 4000 KFC in China. But its competitor McDonald’s had only 1400 restaurants in China. ("The Development of,”). The most important reason that KFC can share most of market is because of its localization strategy in China. Because of cultural diversity, there are huge differences between Chinese and Americans. For Chinese people, they do not like eating hamburgers and cheese source. According to this difference, KFC changes the food formula to adapt to Chinese tastes. KFC is more focus on chicken than hamburgers, which is more localization. By using this localization strategy, KFC share more market than McDonald’s. This winning strategy helps KFC achieve a sustainable competitive advantage, and produce very good company
A company strategy is its action plan for outperforming its competitors and achieving superior profitability. The objective of a well-crafted strategy is not merely temporary competitive success and profits in the short run, but rather the sort of lasting success that can support growth and secure the company’s future over the long term. (Thompson, Peteraf, Gamble & Strickland, 4)
As a winning strategy, first of all, it should fit the company’s situation, to qualify as a winner, a strategy has to be well matched to industry and competitive conditions, a company’s best market opportunities, and other pertinent aspects of the business environment in which the company operates. Second, a winning strategy need to help company achieve a sustainable competitive advantage. Third, a winning strategy can produce good company performance which include two parts: competitive strength and market standing and profitability and financial strength. (Thompson, Peteraf, Gamble & Strickland, 12)
KFC in China is a typical case about winning strategy. The first KFC open in Beijing in 1987, until 2012 there were more than 4000 KFC in China. But its competitor McDonald’s had only 1400 restaurants in China. ("The Development of,”). The most important reason that KFC can share most of market is because of its localization strategy in China. Because of cultural diversity, there are huge differences between Chinese and Americans. For Chinese people, they do not like eating hamburgers and cheese source. According to this difference, KFC changes the food formula to adapt to Chinese tastes. KFC is more focus on chicken than hamburgers, which is more localization. By using this localization strategy, KFC share more market than McDonald’s. This winning strategy helps KFC achieve a sustainable competitive advantage, and produce very good company