Strategic management and business policy
Link to online book:
https://bc.vitalsource.com/tenants/205054/books/9780134538662?bc_token=bf7b6360-9296-0136-9b54-0a580a001a8c&relaunch_vbid=9780134538662
- Answer Questions
(Two questions from Chapter 6)
- What industry forces might cause a propitious niche to appear or disappear?
- What does a business have to consider when trying to follow a cost leadership strategy and a differentiation strategy simultaneously? Can you name a company doing this?
- Answer Questions from POST:1
- Explain why you agree or disagree with their analysis.
- Support your responses with credible references, where applicable.
POST:1
What industry forces might cause a propitious niche to appear or disappear?
A propitious niche is one that is extremely favorably to a company and is so well suited to that company’s competitive advantages that other organizations are not likely to challenge or dislodge it, (Wheelan, 173). This kind of niche is too small for other competitors to try to fill and just large enough for one firm to satisfy demand. Industry forces such as environmental and company growth can make these niches appear and disappear over time. When companies grow and expand, they can lose their hold on a niche. Environmental forces outside of a company’s control can also cause a niche to appear and disappear. Understanding what causes a niche to appear to disappear means understanding the synchronization between the company and the market of the niche.
What does a business have to consider when trying to follow a cost leadership strategy and a differentiation strategy simultaneously? Can you name a company doing this?
According to our text, “Cost leadership is the ability of a company or a business unit to design, produce, and market a comparable product or service more efficiently than its competitors; differentiation is the ability of a company to provide unique and superior value to the buyer. This may include areas such as product quality, special features, or after-sale service,” (Wheelan, 175). Delivering on both of these strategies would be highly unique and rare, but there are some companies that come to mind. I feel Amazon originally met the criteria for being a cost leader and differentiator: they were able to bring consumers to a single website to find all their goods for reasonable or below market prices. Amazon set the pace during the evolution of the internet as leaders in online shopping and really had nothing stopping them. In my recent experience, however, I seem to have noticed lackluster service. Prices aren’t as competitive and the things that drew me to using Amazon over brick and mortar stores, such as fast shipping, have been failing. But I also feel this has to do with me not being a Prime member and therefore not a valued customer.
Wheelen, T. L. (2018). Strategic management and business policy: globalization, innovation, and sustainability (15th ed.). New York, NY: Pearson.
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