Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Identify where and how ikea has achieved cost leadership

18/03/2021 Client: saad24vbs Deadline: 2 Day

Intended learning outcomes

Identify strategic business units (SBUs) in organisations
Assess business strategy in terms of the generic strategies of cost leadership, differentiation and focus
Identify business strategies suited to hypercompetitive conditions
Assess the benefit of cooperation in business strategy
Strategic Business Unit

A strategic Business Unit (SBU) supplies goods or services for a distinct domain of activity.
Distinct businesses within a large diversified corporation
SBUs boundaries is often complex
Competitive strategy

Competitive strategy is concerned with how an SBU strategy achieves competitive advantage in its domain of activity.
Competitive advantage is about how an SBU creates value for its users both greater than the cost of supplying them and superior to that of rival SBUS
*

Generic vs. Interactive Strategies

Porter’s generic strategies

Advantage
Low Cost Differentiation
Target scope Broad target (Industry Wide) Cost Leadership Strategy Differentiation Strategy
Narrow target (Market Segment) (Cost) focus Strategy (Differentiation) focus Strategy
The historic William Morris building, dates from 1916. Car entrepreneur William Morris bought it in 1923 to produce car engines. It was acquired by the university in 1992.

*

Cost leadership strategy

Cost-leadership strategy “involves becoming the lowest-cost organisation in a domain of activity” (Johnson et al. 2012:200)
Figure 5.3 Economies of scale and the experience curve

Cost leadership strategy

Apart from economies of scale and experience, what else could influence cost? E.g. product/process design?

What about quality when taking cost as a priority?

Can charge extra with the same cost but providing product or services valued by customers?

Can charge lower than competitor for a product with similar cost? By doing so, the company can sell more and achieve larger market share?

*

Differentiation strategy

Differentiation “involves uniqueness along some dimension that is sufficiently valued by customers to allow a price premium” (Johnson et al. 2012:203)
Differentiation gives customers a reason to prefer one product over another
Within each market businesses may differentiate along different dimensions
Examples of differentiation strategy

Nokia is interested in the high-end Smartphone market, but they are also selling to the price-sensitive demographic and have an even bigger target in their sight. They want to become the biggest entertainment media network in the world[2]. They are going to accomplish this through R&D with 10 labs throughout the world and by pursuing a comprehensive differentiation strategy with phone prices ranging from $10 to $700 (see Figure 2). Nokia offers devices to satisfy every budget and they are trying to make their products and services indispensable.

Google’s generic strategy, based on Porter’s model, is differentiation. This generic strategy involves a broad market scope. Google offers is products to practically everyone around the world. However, the generic strategy of differentiation also involves developing certain unique capabilities that make the business competitive. Google sets itself apart from competitors through the uniqueness of its products. This uniqueness is achieved because Google is a highly innovative company. The increasing variety of its products, inclusive of Google Search, Google Fiber and Google Glass, is a manifestation of this innovation under the differentiation generic strategy.

Toyota differentiation: design and quality, hybrid car, dominant market share in north America.

*

Differentiation strategy

Two key factors that require clarity before choosing attributes to differentiate on:

The strategic customer
Key competitors
Focus Strategies

Focus strategy “targets a narrow segment of domain of activity and tailors its products or services to the needs of that specific segment to the exclusion of others” (Johnson et al. 2012:205)
Focuser achieves CA by dedicating itself to serving target segments better than others which are trying to cover a wide range of segments
There are two categories of focus strategies: cost focus and differentiation focus.
E.g.: Differentiation in the Airline Industry

Figure 6.5 Mapping differentiation in the US airline industry

Source: Simplified from Figure 1, in D. Gursoy, M. Chen and H. Kim (2005), ‘The US airlines relative positioning’, Tourism Management, 26, 5, 57–67: p. 62

*

Differentiation focus

Which one is…

MaxMara?

Burberry?

H&M?

Cost focus

https://www.youtube.com/watch?v=069y1MpOkQY

Reviewing generic strategies:
Cost, price and profits

Figure 5.4 Costs, prices and profits for generic strategies

Reviewing generic strategies:
Combining generic strategies

A company can create separate strategic business units each pursuing different generic strategies and with different cost structures.
Technological or managerial innovations where both cost efficiency and quality are improved.
Competitive failures – if rivals are similarly ‘stuck in the middle’ or if there is no significant competition then ‘middle’ strategies may be OK.
Reviewing generic strategies:
“Stuck in the middle”

Porter’s argues:

It is best to choose which generic strategy to adopt and then stick rigorously to it.
Failure to do this leads to a danger of being ‘stuck in the middle’ i.e. doing no strategy well.
The argument for pure generic strategies is controversial. Even Porter acknowledges that the strategies can be combined (e.g. if being unique costs nothing).
Interactive strategies
(student self-guided study)

Generic strategies to be chosen and adjusted based on competitors’ strategies.
The business strategy choices interact with those of competitors
Two interactive strategies: cooperative strategy and game theory, particularly in a hypercompetitive context.
Hypercompetitive situation

Hypercompetition describes markets with continuous disequilibrium and change, e.g. popular music or consumer electronics
Successful competitive interaction in hypercompetition demands speed and initiative rather than defensiveness.
Cooperation strategy: Cooperating with rivals

Figure 5.8 Cooperating with rivals

Source : Adapted from Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press (Michael E. Porter 1998) with the permission of The Free Press,
a Division of Simon & Schuster, Inc. Copyright © 1980, 1998 by The Free Press. All rights reserved

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Engineering Help
Smart Tutor
Professor Smith
Isabella K.
A Grade Exams
Instant Assignments
Writer Writer Name Offer Chat
Engineering Help

ONLINE

Engineering Help

I have read and understood all your initial requirements, and I am very professional in this task.

$42 Chat With Writer
Smart Tutor

ONLINE

Smart Tutor

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$26 Chat With Writer
Professor Smith

ONLINE

Professor Smith

I have read your project details. I can do this within your deadline.

$44 Chat With Writer
Isabella K.

ONLINE

Isabella K.

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism

$60 Chat With Writer
A Grade Exams

ONLINE

A Grade Exams

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$59 Chat With Writer
Instant Assignments

ONLINE

Instant Assignments

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$48 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

What argument is frisch making this is the thesis statement - African-American Studies - Why must the crucible be cooled before weighing - Discussion 2 - Talent Management System Outcomes - How to report greenhouse geisser - Classroom and Safety Management Plans - Should writers use they own english - 19 underdale road shrewsbury - Stratco roller door installation - Dauntless voice chat push to talk - St george term deposit interest rates - Cybercrime such as Computer - Assignment - Tina jones abdominal shadow health - Weekly Discussions questions - Does pof have a video call feature - Toyota recall 2009 case study - Hr paper - Services - Explain life of pi - Breville crepe maker debenhams - Commonwealth parliamentary offices melbourne - Which of the following best describes the “7x7” powerpoint rule? - Personal philosophy of nursing examples - Flux cored electrode classification - Afl community club coaching - Boundaryless organization pros and cons - Java assignment help - Animal production lab - Case study - 2014 in roman numerals - Assignment - Knight capital funding lawsuit - Reply to my peers - The college payoff education occupations lifetime earnings - Sodium thiosulfate and hydrochloric acid equation - Safety committee training powerpoint - Film and writing a 3 to 5 page essay - Phet vectors simulations lab answer key - The revenue account fees income is closed by debiting - CAM lesson 3 assignment - Raisin in the sun packet answers - Worksafe early intervention physiotherapy fee schedule - El escorial birthday cake tomb - Discussion: Response - Anne geddes country bumpkin plate - Nursing- evidence based - 8500: Discussion 1-2 - AVD6 - Animal plant cell worksheet - Unwieldy inheritance - Multi genre portfolio examples - Cost volume profit chart excel - Information Interview - Week 2 emarketing - Case Study - Business final - Philosophy Paper on Socrates - Blood donation speech for students - MS 3 - 490 513 in expanded form - Positive and negative reinforcement in the classroom - Auditing questions and answers - Aecc global philippines reviews - American nations colin woodard sparknotes - Market segmentation of coca cola pdf - I need help with my cover letter and resume - Anatomy of Illness paper, 6 pages, APA, more than 4 professional peer reviewed article references - How to write a results section - Hurkle math game - Parallel axis theorem in engineering mechanics - What is amdahls law - Locate the chiral center s in the following compound - Linkworks trial balance - Allinson and hayes cognitive style index questionnaire - Reactions in aqueous solutions worksheet answers south pasadena - Unit 4 Assignment Theory Evaluation Paper- d - Human body - Idc architects east london - Literacy narritive - Tenants union victoria contact - Science Assignment(Quality work, A++, On time) - Evaluative questions reading comprehension - Woodcock reading mastery tests fourth edition - Magnetic field of a solenoid lab answers - Business math and statistical measures - Cell homeostasis virtual lab worksheet - First class levers examples - Meaning behind the truman show - Explain the role of decomposers in the carbon cycle - ESSAY - Lovelorn and whiny in slang crossword - Statistics - Discussion Post - Back to reality eminem - Can you feel the - Buoyancy of floating cylinders - Primary and secondary audience examples - Wheatstone bridge experiment lab report answers - Why would an aed advises no shock