Create a business-level strategy for a firm in the hotel (or furniture) industry, management homework help

User Generated

fvzba

Business Finance

Description

Create a business-level strategy for a firm in the hotel (or furniture) industry. You could use one of the five business-level strategies.

1. Cost leadership

2. differentiation

3. focused cost leadership

4. focused differentiation

5. integrated cost leadership/differentiation


c_4.pptx

Unformatted Attachment Preview

Chapter 4 Business-Level Strategy Part 2 Strategic Actions: Strategy Formulation © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Presentation design by Charlie Cook Business-Level Strategy (Defined) • An integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–2 • Perform activities differently • Perform different activities than rivals © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–3 Customers: Their Relationship with Business-Level Strategies Who will be served? Key Issues in Business-level Strategy What needs will be satisfied? How will those needs be satisfied? © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–4 Who: Determining the Customers to Serve • Market segmentation – A process used to cluster people with similar needs into individual and identifiable groups. All Customers Consumer Markets Industrial Markets © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–5 Table 4.1 Basis for Customer Segmentation Consumer Markets 1. Demographic factors (age, income, sex, etc.) 2. Socioeconomic factors (social class, stage in the family life cycle) 3. Geographic factors (cultural, regional, and national differences) 4. Psychological factors (lifestyle, personality traits) 5. Consumption patterns (heavy, moderate, and light users) 6. Perceptual factors (benefit segmentation, perceptual mapping) Industrial Markets 1. End-use segments (identified by SIC code) 2. Product segments (based on technological differences or production economics) 3. Geographic segments (defined by boundaries between countries or by regional differences within them) 4. Common buying factor segments (cut across product market and geographic segments) 5. Customer size segments © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–6 Adopt from David Aron 2014 4–7 Adapted From David Aron, 2014 4–8 Figure 4.1 Five Business-Level Strategies © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–9 Figure 4.2 Examples of Value-Creating Activities Associated with the Cost Leadership Strategy © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–10 Cost Leadership Strategy (cont’d) • Competitive Risks – Processes used to produce and distribute good or service may become obsolete due to competitors’ innovations. – Too much focus on cost reductions may occur at expense of customers’ perceptions of differentiation. – Competitors, using their own core competencies, may successfully imitate the cost leader’s strategy. © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–11 Figure 4.3 Examples of Value-Creating Activities Associated with the Differentiation Strategy © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–12 Competitive Risks of Differentiation • The price differential between the differentiator’s product and the cost leader’s product becomes too large. • Differentiation ceases to provide value for which customers are willing to pay. • Counterfeit goods replicate the differentiated features of the firm’s products. © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–13 Focus Strategies • An integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment. – Particular buyer group—youths or senior citizens – Different segment of a product line—professional craftsmen versus do-it-yourselfers – Different geographic markets—East coast versus West coast © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–14 Factors That Drive Focused Strategies • Large firms may overlook small niches. • A firm may lack the resources needed to compete in the broader market. • A firm is able to serve a narrow market segment more effectively than can its larger industry-wide competitors. • Focusing allows the firm to direct its resources to certain value chain activities to build competitive advantage. © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–15 Competitive Risks of Focus Strategies • A focusing firm may be “outfocused” by its competitors. • A large competitor may set its sights on a firm’s niche market. • Customer preferences in niche market may change to more closely resemble those of the broader market. © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–16 Integrated Cost Leadership/ Differentiation Strategy • Often involves compromises – Becoming neither the lowest cost nor the most differentiated firm. • Becoming “stuck in the middle” – Lacking the strong commitment and expertise that accompanies firms following either a cost leadership or a differentiated strategy. © 2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–17
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer


Anonymous
Awesome! Perfect study aid.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags