Differentiation strategy
Product uniqueness which allows for the charging of a premium price to cover for the additionally incurred expenditure
5
Additional costs which will reduce overall financial gains (they will however be recuperated from the premium price)
2
3
7. Description of the Selected Strategy
Based on the analysis conducted at the previous stage, it becomes obvious that the most adequate course of action at this stage is that of implementing differentiation strategies. These actions basically translate into the promotion of new products onto existent markets, meaning that Porter's differentiation strategy is the analogue of Ansoff's product development strategy. The table above even reveals that both these strategies have received the highest scores, meaning that they are the ones which combine the advantages best desired by the organization and reveal the limitations which are not that threatening for the chocolate manufacturer.
The differentiation strategy is defined as an "an integrated set of actions designed to produce or deliver goods or services that customers perceive as being different in ways that are important to them" (Kotelnikov). It is one of the most important pillars of marketing success in the modern business community and leadership within any industry cannot be achieved without differentiation. Its importance is given primarily by the ever changing demands of the customers, combined with the growing competition. Furthermore, it is extremely feasible and competitive given the current context. The diversification strategy is as such the most adequate means of ensuring that the growing sales are maintained as the customers are satisfied and also increasing in number.
8. Action Plan for Implementation
The first step in ensuring a triumphant implementation of the differentiation strategy is that of ensuring that the organization possesses those skills and techniques which are compulsory in succeeding. These basically incorporate the ability to manifest competitive advantages, a skilled and creative team in charge of product manufacturing, a leading R&S team, strong sales teams, and a strong organizational brand and reputation (Quick MBA). The Real Chocolate Company possesses all but one of the previously mentioned characteristics -- a leading team of scientific researchers. In this order of ideas, the first step will be that of creating this team of scientific researchers to help it with the development of new recipes. The necessity of this team is given by the growing role of chemistry in the kitchen (Discovery Channel, 2009).
Then,...
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