Muhammad Mazhar Hayat Khan
Student ID # 43969461
Internal analysis
IGA Generic Strategy:
Generic strategies also known as competitive strategies were put forward by Porter in 1980 (Brown, et al., 2016). By implementing these strategies, a company may achieve competitive advantage over its competitors. The three strategies are:
Cost Leadership,
Differentiation and,
Focus.
The focus of first two strategies i.e. cost leadership and differentiation is broad and industry-wide while the third is focus strategy which targets a niche market (Brown, et al., 2016). (Smith, 2009)
Automatic inventory replenishment system already helped IGA reduce their inventory storage requirement in earlier years. With that initiative IGA was able to cut down
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Its products aimed to be Australian products and thus has competitive edge over its suppliers which attracts the customers to buy stuff from IGA. IGA is now taking initiatives to develop new products and diversify its product range focussing more on local demands and customize its products accordingly (Metcash, 2015). As a result of its initiative it will provides more value to its customers and add competitive advantage for IGA. IGA branded supermarkets are being supported by Metcash Ltd which provide IGA stores with internet access (Metcash, 2014) resulting in customer accessibility to IGA supermarket and thus making IGA stronger and profitable. IGA network is becoming stronger which supports its initiatives for improvements in pricing, range of products which is more customer focussed now (Metcash, …show more content…
A company does not build its competitive position at once, rather it comes from establishing distinctive capabilities accumulating over a certain period of time (Boxall, 2003). IGA has a market reputation and thus strong brand name, which are its distinctive qualities, along with power of being largest independent retailer in Australia (Merrett & Smith, 2010). IGA provides quality products at low prices which is an important reason that attracts people to buy grocery from IGA. IGA also maintains a strong relationship with its suppliers which enables IGA to get discounts from its suppliers thus reducing their cost which ultimately helps them to sell and offer low price products to its customers (Metcash,
AWG is faced with logistical challenges similar to others in the industry. The largest logistical challenge on a daily basis at AWG is their finite timeline between restocking and outgoing shipments to retailers. Any deviation from the schedule due to an extenuating circumstance (labor strike, weather event, ...
The strategy for competing in the market was a broad-differentiation strategy. It was broad because it produced a large variety of products such as clamps, inserts, knobs, and similar items. Also, it differentiates from the other metal companies because of its good quality, good delivery, and reasonable price.
Porter’s generic strategy typology and the Miles and Snow strategy typology are both examples of generic strategic models that a decision maker may find useful (Parnell, 2014). Both generic strategy frameworks explain generic business strategies by utilizing four different strategy types. A few of the strategies may share some common traits, however the frameworks are different in the approach they take to view and describe strategies (Parnell, 2014).
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
It should capitalize on the cost-leadership strategy and improve its customer service to edge out Ace and steal a chunk of its market share. Lowe’s should also seek to negotiate for favorable contracts with the major Australian suppliers on a cost-advantage level and thus increase its bargaining power. Moreover, such a strategy would create an entry barrier for Australian start-up competitors who might seek to use their home advantage to outcompete
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
For Oliver’s Market among the five Competitive forces, pressures associated with the threat of new entrants into the market are the strongest one. Because Wal-Mart and Target had announced plans to develop regional supercenters in the Sonoma county region. They are strong candidates for entering the market, because they possess the res...
To most consumers Whole Foods is known as a chain grocery store specializing in organic and natural foods. Some may go as far as say the name is synonymous with quality. This comparison is the result of Whole Foods’ marketing their brand successfully to consumers demanding their specialized foods. As with any organization, Whole Foods may consider evaluating their strategic objectives and decide if necessary course corrections are needed to reach their objectives and goals. Through a fundamental and technical analysis, I will discuss Whole Foods’ mission, vision, and goals, their competitive environment, and some factors within their strength, weakness, opportunity, and threat analysis. With such data and information I will recommend, if needed, and strategic changes in order to sustain a competitive advantage.
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rival...
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
primary strategies of each competitor (e.g. low cost leader, focused differentiation, prospector, reactor, etc.), Porter's 5-forces assessment):
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2008). Crafting & executing strategy: The quest for competitive advantage (16th ed.). New York: McGraw-Hill Irwin.
Competitive strategy is the approach that an organisation takes in order to gain advantage over its competitors. According to Porter, there are two major sources of competitive advantages: costs and differentiation. Cost-based competitive advantage involves reducing production costs so that an organisation can earn higher profit margin or offer products at lower price compared to competitors. Differentiation-based competitive advantage involves offering unique properties that are not offered by competitors’ products. Differentiation allows an organisation to charge a premium for their products because they offer additional benefits to buyers.
Thompson, A.A., Strickland, A.J., & Gamble, J. E. (2010). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-Hill-Irwin
At the business unit level, the strategic issues are less about the coordination of operating units and more about developing and sustaining a competitive advantage for the goods and services that are produced. At the business level, the strategy formulation phase deals with: · Positioning the business against rivals · Anticipating changes in demand and technologies and adjusting the strategy to accommodate them. · Influencing the nature of competition through strategic actions such as vertical integration and through political actions such as lobbying. Michael porter identified three generic strategies (cost leadership, differentiation, and focus) that can be implemented at the business unit level to create a competitive advantage and defend against the