How Do Companies Choose Best Strategy to Use
Autor: lukio • April 13, 2017 • Case Study • 389 Words (2 Pages) • 737 Views
MGMT-510 Assignment
LU YAO 1173362
Q1: How do companies know which strategy is the best strategy to use? Review figure 3.4 and table 3.2. How do companies prepare for and decrease the factors affecting the threat of entry?
Q2: Review table 4.3 add one strength, weakness, opportunity, and threat
A1:
1. Enterprise strategy choice is market-oriented; technology logic is based on the development of science and technology. For the technical logic, the progress of the technology itself is sufficient; but for the enterprise strategy, the progress of the technology itself is only a necessary condition, we must also consider the various factors of market competition in order to be successful.
Depending on the source of the competitive advantage, the determinants of strategic choice can be divided into two categories:
First, it is the external environment. Emphasizing the external environment of the opportunities, threats and industrial structure are the basic factors leading to corporate strategic choice.
Second, it is the internal resources and capacity. Emphasizing the corporate strategy is a reasonable allocation of unique resources within the enterprise and the integration of internal capacity to adapt to changes in the environment so that can obtain sustainable competitive advantage.
2. Companies already well established in certain product categories or geographic areas often possess the resources, competencies, and competitive capabilities to hurdle the barriers of entering a different market segment or new geographic area.
They may lower their prices. Have more or different features. Have better product performance. Have higher quality. Build stronger brand image and appeal. Have wider selection of models and styles. Build a bigger/better dealer network. Get low interest-rate financing and higher levels of advertising. Have stronger product innovation capabilities and better customer service capabilities. Also, have stronger capabilities to provide buyers with custom-made products.
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