All of the following are ways that a good or service can be differentiated EXCEPT, The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because. The commercial construction firms are putting pressure on Durable to reduce its prices. Essay, 7 pages. What are the risks of an integrated cost leadership/differentiation strategy? (467), 4.7 Which of the following aspects of managing customer relationships does this choice refer to? In general, firms can be most effective if they develop business-level strategies that will serve the needs of the "typical customer" in the industry. Risks of D ifferentiation Strategy. This brand has a strong following and is recommended by veterinarians who practice in affluent neighborhoods. Almost any identifiable human or organizational characteristic can be used to subdivide a market into segments that differ from one another on a given characteristic. TQM is most helpful to firms following the ______ business strategy. A firm's core strategy is its ____ strategy. The best technique for this firm to learn this information would be to use. What is the decorator's problem? Firms implementing cost leadership strategies often sell no-frills standardized goods or services (but with competitive levels of differentiation) to the industry's most typical customers. Imitation narrows perceived differentiation, a common occurrence as industries matur… c. the cost leadership strategy. These are, The benefit of a flexible manufacturing system is that, A nationwide chain of pet stores wishes to identify the tradeoffs that its customers are willing to make between low-cost products such as generic pet foods and differentiated features such as pick-up and delivery of pets for grooming. The _________ dimension of relationships with customers is particularly important for social networking sites such as Facebook and MySpace. To position itself differently from competitors, a firm must decide to either perform activities differently or to perform different activities. I will then compare this to another organisation which will be Currys. Last risk is the threat of counterfeiting, whereby firms produce a cheap “knock-off” of a differentiated good or service. Target's brand promise "Expect More. Not only that, the ability of competitors to provide customers with product that have features similar to those associated with the differentiated product, but at a lower cost is also one of the risk. Because of its focus on innovation and quality manufacturing, Total Quality Management is not useful for firms that follow a cost leadership strategy. He is in the market for a new car and had previously considered only buying another luxury SUV. One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies. Walmart's change in strategy to attract more upscale customers will likely succeed because cost leaders are good at differentiating. J.C. Penney attempted the strategy _______ . Zara has pioneered "cheap chic" in clothing apparel. The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste." But it couldn't out ______ Walmart, nor could it _______ Macy's and Target. Walmart's same store sales have been declining and those of rivals Family Dollar and Amazon have been increasing. Essay, 4 pages. Market Orientation, Customer Value, and Superior Performance Stanley F. Slater and John C Narver Thinking in terms of the market (not marketing) is essential in the highiy competitive arenas of today, o achieve superior performance, a business must develop and sustain competitive advantage. This can be a high-risk strategy because you must invest in both reducing costs (throu… A river barge company can offer cheaper, although slower, per pound transportation of products to companies when compared with transportation by air, truck, or rail. 1) THE PROBLEM 1.1.PROBLEM DEFINITION. Differentiation strategyalso involves a series of risks: 1. Introduction In this PowerPoint I will prepare a set of presentation slides for Next that explains the competitive pressures they have faced to develop their use of E-Business. Besides this, decisions by industry-wide competitors to serve a customer groups specialised needs that the focuser has been serving is also one of the risk. About six months ago, a mid-sized manufacturer of athletic shoes decided to pursue an integrated cost leadership/differentiation strategy. The differentiation strategy is effective for products that are expensive, luxury consumer goods. Anthony was surprised at the comfort and performance of the car. If Durable reduces its prices below those of Cost-Less's prices, it is likely that. This type of strategy is often called a hybrid strategy. COMPETITIVE RISKS OF THE INTEGRATED COST LEADERSHIP/DIFFERENTIATION STRATEGY-Primary risk is that a firm might produce products that do not offer sufficient value in terms of either low cost or differentiation → firm is ‘stuck in the middle’ → preventing them from dealing successfully with competitive forces in its industry and from having a distinguishable competitive advantage. This effects which of the five forces of industry structure most directly? Signature Cleaners advertises "equal price" for all customers. a. Essay, 5 pages. This represents which of the three service dimension? Flexible manufacturing systems, information networks, and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy. These functional areas include management, law, human resource management, leadership, accounting, finance, economics, research and statistics, operations management, marketing, and strategic planning. A business-level strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage in specific product markets. This strategy is about simultaneously focusing on two drivers of competitive advantage: cost and differentiation. Human resources and other support functions are not value-creating activities in the value chain; only the value chain activities create value. Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in. Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and organically raised lamb. c. the cost leadership strategy. Buyers thus sacrifice some of the features, services, or image possessed by the differentiated firm for large cost savings; 2. Most of its products are purchased by a few commercial construction firms, so it is fairly dependent on these construction firms for selling its product. It has never spent one cent on advertising, which is one reason it is able to pursue a(n) ______ strategy. We use cookies to give you the best experience possible. Differentiation strategy also involves a series of risks: Historically, women have paid more for dry cleaning than men. To implement the strategy, Zara uses sophisticated designers and effective means of managing costs. Students looking for free, top-notch essay and term paper samples on various topics. The risks for both focused cost leadership and differentiation strategy are combine together. The typical risks of a differentiation strategy do NOT include which of the following? These themes include limited passenger service, high aircraft utilization, highly productive ground and gate crews, and so forth. Now, he is thinking about the significant cost savings he would have if he bought the compact vehicle rather than a new SUV. This can occur as buyers become more sophisticated; 3. Essay, 10 pages. The risks include competitor’s ability to use its core competencies to ‘out-focus’ the focuser by serving an even more narrowly defined competitive segment. Rather than trying to excel in all three, major industry leaders typically focus their differentiation strategies on one value discipline, while meeting industry standards in the other two. 4.8 Buyers need for the differentiating factor falls. New Balance Athletic Shoes target Baby Boomers' needs for well-fitting shoes. The typical risks of a cost leadership strategy include, When a firm is able to produce nonstandardized (that is, distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing, A firm successfully implementing a differentiation strategy would expect, The products or services that are differentiated from others have qualities that are, Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas are indistinguishable even to regular drinkers of vodka. A new generation of lunch trucks in cities such as New York, San Francisco, and Los Angeles serving high-end.