This strategy is developing new IT features to differentiate products and services. It also use IT features to reduce the differentiation advantage of competitors and to focus products and services at selected market niches. In 1971‚ FedEx began to offer overnight package delivery by air. At that time‚ Fred Smith found that U.S. Postal Service and United Parcel Service (UPS) also taking several days to deliver packages. Therefore‚ Smith started the overnight delivery and he charges higher prices
Premium United Parcel Service United States Postal Service
and cons of each alternative. Alternative of low cost Pros * New traffic for budget conscious customers * More sales volume Cons * More needed space to hold product * Less product available because selling product faster * More labor required for replenishment of inventory and store front * More disgruntled employees from sheer volume of customers * High employee turnover from stress Alternative of differentiation Pros * Highlights company strengths and niches
Premium Sales Customer service Marketing
Differentiation strategies are not about pursuing uniqueness for the sake of being different. Differentiation is about understanding customers and how GM ’s product can meet their needs. To this extent‚ the quest for differentiation advantage takes us to the heart of business strategy. The fundamental issues of differentiation are also the fundamental issues of business strategy: Who are GM ’s customers? How does GM create value for them? And how does GM do it more effectively and efficiently
Premium Customer service Marketing Product differentiation
Dell Computers Strategy Global companies play an important role in the business environment‚ because they connect their business together around the world. A good example of a global company is Dell Inc.‚ an American computer-hardware company‚ headquartered in Austin Texas‚ which develops‚ manufactures‚ sells and supports a wide range of personal computers‚ servers‚ data storage devices‚ network switches‚ personal digital assistants (PDAs)‚ software‚ computer peripherals‚ and more. They design
Premium Brand Customer service Dell
Apple and Dell 1. Explain how each business differentiates itself. 2. Evaluate the benefits to apple of differentiating itself from its competitors. Apple Inc. and Dell Inc. are both regarded as reputable‚ distinguished businesses. They both provide products and services which are associated with consumer electronics‚ computer software and/or hardware‚ and general‚ personal computing devices. This means that both companies produce products which are sold within the same market. However‚ even though
Premium Apple Inc. Cellular differentiation Dell
Positioning and Differentiation Strategies Differentiation is the act of designing a set of meaningful differences to distinguish the company’s offering from competitor’s offerings (Rao‚ 2010). With Voice to Text/Text to Voice‚ Toyota designed itself above the rest. After researching the needs of its consumer‚ Toyota focused its plans on the safety and needs of today’s driver. With the human need to stay connected to our loved ones‚ friends‚ and business contacts at the touch of a button‚ Toyota
Premium Marketing Product differentiation
increasing profitability in such a competitive industry as retail business‚ the failure of Sears Domestic was mainly caused by the shortage of resouces and capabilities as well as tactics definition and execution rather than strategy itself. Since Sears Domestic has a non-competitive cost structure in comparison with its key competitors (e.g. Walmart‚ Target‚ Home Depot‚ etc.) ‚ it is wiser to pursue differentiation strategy than low-cost strategy. In addition‚ Sears need more focus on customer segments to
Premium Clothing Clothing Customer
10/28/2010 | | Dell Co. Marketing Plan | C.E.O Patrick Eversull C.F.O. Anthony Chapman C.O.O. Thomas Jackson President of Tactics Stephen Miclette C.E.O Patrick Eversull C.F.O. Anthony Chapman C.O.O. Thomas Jackson President of Tactics Stephen Miclette Executive Summary For many years the Dell Corporation has been the fastest growing entity in the computer industry and is considered a pioneer in direct marketing. With the Pc industry being such a unique industry with its super
Premium Personal computer Dell
APPLE DIFFERENTIATION STRATEGY Post Published: 17 January 2011 Author: Nellie Amirah Lim Found in section: MWS Articles We can describe Apple’s strategy in terms of product differentiation and strategic alliances Product Differentiation. Apple prides itself on its innovation. When reviewing the history of Apple‚ it is evident that this attitude permeated the company during its peaks of success. For instance‚ Apple pioneered the PDA market by introducing the Newton in 1993. Later‚ Apple introduced
Free Apple Inc.
however majority of their costs pertains to fixed costs (84%) which will still be incurred despite the reduction in capacity. 2. Faced with: - a. Increasing operation costs such as fuel (due to the rising oil prices) and labor (taken care by union). 3. Exposed to: - a. Exchange rate risk as certain costs (i.e. oil prices) are denominated in foreign currencies such as USD. Though exchange rate risk can be managed by hedging‚ there’s also risk involved in hedging strategies (locked into a high price
Premium Singapore Airlines