Competitive Organization

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How does your organization compete?

Walker et al. (2010) write, “competitive strategies are based on overall patterns of purpose, practice, and performance.” After reviewing the annual report and company website, it appears that Limited Brands Inc. (LTD) does not only have one competitive strategy. Since the firm is divided into several distinct strategic business units (SBU) with differing core competencies and available resources, as well as disparate customer and competitive characteristics it employs different strategies to create value, promote growth and profitability (i.e. Victoria’s Secret and Bath & Body Works; Walker et al., 2010).

For instance, the Victoria’s Secret SBU appears to leverage a “differentiated analyzer strategy” by “actively seeking to expand into related product markets with differentiated offerings” (Walker et al., 2010). Not only does Victoria’s Secret offer a differentiated line of lingerie, but it also has expanded its product offerings to include beauty, apparel, and accessories. These expansions are largely financed and supported by the SBU’s core business (lingerie) and its profitable, strong brand reputation.

In contrast, the Bath & Body Works SBU seems to employ a “differentiated defender strategy” (Walker et al., 2010). Its activities focus on constantly improving existing offerings by modifying products as well as processes. In addition, it also defends its market position through line extensions to help insulate and fortify the company’s position from competition.

In its annual report LTD notes “we are aggressively focusing on bringing compelling merchandise assortments, marketing and store experiences to our customers” (LTD, 2011). This implies that LTD’s overarching strategy is driv...

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Resources:

Anderson, J.C., Narus, JA., & van Rossum, W. (2006). Customer value propositions in business markets. Harvard Business Publishing. Retrieved from http://hbr.org/

Johnson, M.W., Christensen, C.M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Publishing. Retrieved from http://hbr.org/

Limited Brands Inc. (LTD). (2011). Proxy statement and annual report. Retrieved from https://materials.proxyvote.com/Approved/532716/20110328/CMBO_86861/HTML2/default.htm

Porter, M.E. (1996). What is strategy? Harvard Business Review. Retrieved from http://hbr.org/

Treacy, M., & Wiersema, F. (1993). Customer intimacy and other value disciplines. Harvard Business Review. Retrieved from http://hbr.org/

Walker, O.C., & Mullins, J.W. (2010). Marketing strategy: a decision focused approach (7th Ed.). New York, NY: McGraw-Hill.

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