Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Competitive Analysis and Positioning Strategies
Why do strategies fail?
The main reasons behind the failure of strategies are wrong execution practices. Some aspects of a strategy aren't really addressed. Bad strategies produce disappointing results. However, it should be noted that some good strategies also fail. It is much harder to figure out how things went wrong when a good strategy fails. Although good planning is obviously desirable; and indeed putting the strategy in action, few management chiefs really make an effort to fine-tune the process and leadership aspects that lead to the realization of the anticipated results. It is the lack of know-how in the execution of strategies that leads to the failure of, even, great strategies. The consequences are often grave.
One of the common identifiable reasons why strategies fail is to allow a strategy objective to change with time. Another common reason why strategies fail is because there are senior managers down the product delivery chain that do not agree with the new changes and begin to resist it (Wharton, 2005).
2. Distinctions
Pioneer
A pioneer focuses on the introduction of a new product and seeks to sell it to a broad market niche by use of inventive strategies coupled with a unique approach to such markets. They are primary product innovators, unlike fast follows, cost leaders and customer centrics.
Fast Follower
This is an imitative...
The fast follower's strength lies in their ability to improve on the pioneer's form and content.
Cost Leader
These are the late market entrants that apply assertive approaches to buffer their primary market bases from infiltration by competitors. Their primary preoccupation is enhancing efficiency across the levels of the value chain. These strategies eventually allow them to sell at lower prices. They differ from other strategies because their main aim is to strive for efficiency in the value chain so as to offer lower prices.
Customer Centrics
They offer great quality, impressive customer service and relatively lower prices than pioneers, but higher than cost leaders and fast followers (Slater, Olson, Tomas, & Hult, 2005) as a way of hooking their client base to become loyal to their outlets.
3. Successful Pioneer
Success in pioneering lies in both product and customer focus innovation. It involves a decentralized marketing system and patience on the part of the pioneer. Such a pioneer seeks a team of highly efficient marketing experts. Pioneers are assertive in their marketing approach because their primary anchors are innovators and those who adopt fast.
Successful Cost Leader
They have little focus on the innovation of products. Their preoccupation…
References
Baskerville, P. (2014, March 28). How do you compete with Starbucks in the coffee industry? Retrieved from Quora: https://www.quora.com/How-do-you-compete-with-Starbucks-in-the-coffee-industry
Bhasin, H. (2012). Levels of Strategy. Retrieved from Marketing 91: http://www.marketing91.com/levels-of-strategy/
Slater, S. .., Olson, E. .., Tomas, G., & Hult, M. (2005). Making Sure That Marketing Decisions Match The Business Strategy. Marketing Management, 23-28.
Wharton. (2005, August 10). Three Reasons Why Good Strategies Fail: Execution, Execution ... Retrieved from Wharton School: http://knowledge.wharton.upenn.edu/article/three-reasons-why-good-strategies-fail-execution-execution/
These two factors of aspirational value of the brand and customer experience are what also make this factor a very critical opne in the augmented analytical framework. Market Growth The growth of coffee retailing continues to be flat, only generating 5% growth on a compound annual basis (Joo, Min, Kwon, Kwon, 490). This is forcing coffee retailers to concentrate on highly differentiated approaches to selling. For Dunkin' Donuts their approach is
Starbuck's Pricing Strategy: Throughout its history, Starbucks Corporation has established a reputation for having the most expensive coffee products in the marketplace. The evident premium pricing at Starbucks are combined with the premium name or brand that the organization has also developed. While the prices of Starbucks coffee products are relatively expensive, the high prices are approved by many customers in many places where the firm has its operations. Pricing act
Strategy and SWOT Analysis Key Concepts in Business Strategy and SWOT Analysis Creating a competitive business advantage is a complex endeavor. Various techniques have been developed to guide the self-analysis process practiced by business enterprises. Traditional strategic planning engages a company in both internal and external analysis. In order to conduct a strategic analysis that makes niche or unique opportunities salient, it is necessary to have a robust view of the competitive
The vision statement developed by the company refers to the product it sells, which is represented by the finest coffee in the world, the position that Starbucks intends to reach, which is represented by the leadership in this industry, and its principles. Therefore, the vision statement offers numerous clues. However, the vision statement of Starbucks is not as short as it should be, and it does not seem to be very
Starbucks in India Identifying Global Opportunities Global Business Opportunities Starbucks is a global retailer of coffee, and is seeking new growth markets, since its largest markets (U.S., Canada, UK) are all mature. The company has nearly 20,000 stores (2011 Annual Report). The company has premium positioning in the market with its brand, logo and patents providing key intellectual property to expand globally. Potential Markets When looking for potential markets, Starbucks seeks the opportunity to license
A fourth foundational element is the strength of the Starbucks brand itself and is ubiquity globally. As a result of rapid and well-defined strategies for opening up retail stores, Starbucks is now considered one of the most preeminent and strongest brands globally. Starbucks has generated the strength of their brand through combining high-quality coffee and tea beverages with the third-place concept to generate customer loyalty and world-of-mouth among customers and their