The blue ocean strategy is primarily on creating a whole new business concept that breaks the value-cost trade-off and creates a demand for a new market space rather than fighting over. The strategy is based on creating a demand that gives numerous chances for development, which is both profitable and fast. The blue oceans are created by launching completely new industries and by setting managerial actions, as well as decisions involved in market-creating business offering. For example, with the oil and gas sector accounting for over 31% of Arab country’s GDP, higher oil prices and the increasing oil production capacity will continue to support the UAE’s economic growth despite the uncertain global economic climate.
Broadband Cable Internet is an apparent winner in the contest between cable and DSL. It became better choice ever since the establishment of cable technology. Though Cable has high speed, it is more expensive. DSL offers greater coverage areas and is exceedingly cheaper than cables, although it is much slower. The probability of DSL catching up with Cable anytime soon is minimal because as much as there is more invention of a more advanced DSL copper lines known as ADSL or ADSL2+, there is also a new form of fiber-optic cable. The optic cables connections being developed that will reach 1Gbps and the advanced DSL reaches 15Mbps.
The rationale behind the mergers and acquisitions was to reinforce the market position and expand the business to many regions like Egypt. The mergers and acquisitions fit the bank’s business strategy since its main plan is to shift from the product-led approach to an emphasis on offering bespoke wealth solutions for the bank’s Priority Banking customers. The smaller banks should accept to be merged and acquired so that the banks can get consultative points, get insurance sponsorship for their customers and also strengthen their business.
Generic competitive strategy employed
Spinney Super Market employs the broad differentiation where it seeks to incorporate product attributes that makes buyers consider their products variable and worth buying.
The supermarket employs a low-cost provider strategy since the supermarket combines a strategic stress on the low-cost of their products.
Amazon.com uses best-cost provider because it gives its customers more value for their money by having products with appealing characteristics at cheaper costs..
- d) Ace Hardware Co.
The company employs focused differentiation strategy because its products have characteristics that are focused to satisfy a particular customer requirement.
The company uses an overall low-cost provider strategy by selling at relatively low price to perform over other companies producing the same products.
The organisation uses a broad differential strategy that aims at developing and marketing their broadcasting system for different customer segments.
The bank employs broad differentiation approach being that it has a broad cross-section of the target market. The bank emphasizes on innovation and is able to have competitive advantage over its peers.
- h) Indian schools
The schools use the strategy of focused low-cost provider because their services are cheaper compared to other schools offering the same services.
Goodyear Company is vertically integrated in such a way that it operates in most regions of the world but has the same production path. The company has chosen to operate various segments of the value chain that is, in the manufacturing and selling of power transmission belts, hose and other rubber transportation industry and rubber-related chemical applications. Goodyear Company seems to be vertically integrated since the company expands the business into different regions in the world and also venture in producing various materials lying on the same production path.
Online enterprise is a technique that eBay use in sales relations. The approach is similar to the business differential competitive strategy because the company relies on other companies to provide the products so that they can facilitate the transaction. It means that after acquiring the products, they can now design their unique products for different customer segments. Lowe’s Home Improvement employs a brick-and-click strategy that is similar to focus competitive market strategy because the company uses online orders to connect to the customers for service delivery. At the same time, the company uses limited time to expand their stores so that many customers can reach them as they make purchasing process convenient.
Small organizations can make use of market niches that exist. For instance, the Exertris gaming company follows a focus strategy in hope to achieve reasonable profit. The company focuses on their product that is by putting videos of on the gaming instruments to keep their customers active and enjoy their exercise. The strategy makes the company perform over others with similar training resources, and it makes the exercise equipment industry to dominate the entire market.
ESPN has expanded its program by changing its brand name to a host cutting-edge sports business. It made the organisation start nine new businesses that carry the brand forward into new markets and create challenges for potential competitors. With the expansion initiatives, the ESPN has dominated the sports entertainment industry.
- Exercise and fitness industry – mature/slow growth
- Dry cleaning industry- mature/slow growth
- Poultry industry- high velocity
- Camera film and film- developing industry- rapid growth
- Soft drinks industry- fragmented
- Watch industry- stagnant/declining
- Cell phone industry- High velocity
- Recorded music industry (CDs, tapes)- fragmented music industry
- Computer software industry- rapid growth
- Newspaper industry- stagnant/declining
Yahoo, as can be seen anticipates change and is therefore ever prepared to handle the changes that might come in the industry through a variety of strategies. Yahoo has strategic alliances, acquisitions and is a leading innovator in the industry to stay ahead of the competition.
The key strategies for competing in a dynamic market include innovation, acquisitions, advertising campaign and launching new alliances. Innovation includes new product developments and marketing strategies such as online presence. Acquisition refers to using other company’s resources so as to reduce operational cost while making profits. Launching new alliances may take the form of mergers so as to expand and meet the consumer demands.
PIMS studies companies’ information concerning their operation market, products and the efficiency of the strategies they have implemented. The PIMS project analyzes the collected data to identify problems, options, opportunities and resources faced by each strategic business unit. PIMSconsiders the strong market positionwhencreating its business strategy.The international energy service provider, ISTA, reinforces its market position in the UAE by equipping several multi-apartment houses of Dubai Properties Group. This is one of the leading property developers with modern hardware technologies for the billing of individual energy consumption.
The concentration of competitive rivalry is a main factor that will gauge the competitiveness of the bank in Abu-Dhabi. The bank should work on having a maintainable competitive lead through innovation. It should also work on having a powerful competitive strategy that will assist it in acquiring and maintaining clients in the UAE. The bank should work to have a strategy that will assist in attracting new corporate clients as well as deepening and retaining the existing client relationships.
I would first analyze the company’s long-term dreams, but make them attainable in a nearer term. Creating a clear-cut vision will offer intelligibility and the context of the management decisions. I would insist of the vision to be a yardstick against which all schedules and plans are made and evaluated. I would also advise the management to come up with a vision that is inspiring and motivating the workers.
Best Buy should be categorized as a differentiation strategy company. The organization works to differentiate its products in ways that attract a wide variety of customers. Buyers are able to differentiate the company from others by its better customer service. The customers have also stated that the retailer’s sales staffs are outstandingly well-informed about the company’s products, and can also direct them to the exact locations of the products that are difficult to find. The electronic demonstration models are always geared up for in-store use. Maintenance and installation services are also offered by the company.
Stihi Company aims to develop and marketing its unique products for different customer segments. Stihi Company has the ability to managea range of advertising services. The company’s marketing strategy of using expensive advertising campaigns contributes to its differentiation strategy.
These companies use best-cost strategy. Dell follows a relatively lower price which matches its customer’s expectation of worth for money. The strategyworks wellwhen the goal of the business is tohave a competitive edge. Best-cost provider’s risk is the capability of snatching buyers with the use of a lower price, and the higher-end differentiators will be doing the same with improved product characteristics.
BMW Company use performance attributes in their automobile production to separate their brand from the competition. The dedication of the company in designing and constructing aerodynamic bikes assisted the brand shape a distinctive gap in the super competitive race bike segment.
The FCC’s act of loosening the rules made Clear Channel Company come up with the acquisition strategy. This strategy entails where a small company with additional capital purchases another company or a product line of that company. The acquisition enabled Clear Channel Company to diversify its products and services worldwide. The company was able to access a wider customer base and thus increase its market share.