Competitive analysis and positioning strategies

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 group that seeks to emulate successful products as they cling to the controlling products and significant customer bases. 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 is managing internal costs, while using decentralized marketing systems. They are typical minimizers. They operate by waiting for a product line to prove that it's worthwhile before they throw in their version. They embark on an efficient marketing plan, coupled with focus on high quality, lower prices, and efficient and consistent distribution strategies. Their product line is usually highly sensitive to the cost factor. On the other hand, they hardly deploy expert marketers on their teams (Slater, Olson, Tomas, & Hult, 2005).

4. Major Fast Followers are largely focused on getting into new market spaces and coming up with new products. The primary risk that exists here is the uncertainty of the markets. They do this while steadfastly clinging to their carrier markets and products. Effective fast followers are keen on customer reactions to new products. They also keep a consistent eye-trail on what their competitors are up to. They identify the weaknesses of their competitors and capitalize on them by filling the gaps; addressing aspects of dissatisfaction and product failures. They are also keen on finding out what marketing plans the competitor is using; just to make sure they keep up to speed (Slater, Olson, Tomas, & Hult, 2005).

5. Indeed, Starbucks is a typical ultimate Customer Centric business outfit. They establish a close bond with customers as they avail innovative and quality products. They employ a selective distribution approach and utilize advertizing with moderation. Starbucks uses lifestyle experience strategy that only supplements the hot coffee experience taken in a soothing homely environment; spread out along the major road tracks back to people's homes from their work places.