HI6006 |Competitive Strategy Individual Tutorial Assignment Solved
How should Tiffany & Co. revamp its image and to return to its former glory by assessing the competitive forces that are affecting the luxury jewelry and specialty retailer industry. Answer this question in 400 words
ANSWER: ** Answer box will enlarge as you type
The case study shows that Tiffany &Co was one of the best brands in the market in the early years. However, the change in the market significantly contributed to the change in the company’s image in and market share. However, the company can apply relevant and effective approaches to revamp its image and to return to its former glory by the assessing its competitive forces. In light of the application of competitive forces, new entrants is one of the factors that contributes to the decline in the performance of Tiffany & Co. According to Porter’ competitive forces model , new entrant, rivalry among the existing companies and the existence of substitutes are some of the factors that can affect a firm’s competitiveness in the market. Despite the incase in competition and introduction of new players in the jewellery market, Tiffany &Co can focus different approaches that will aim at taking it to its previous position in terms of market share.
Branding is one of the techniques that the company can apply to revamp its impage in the market. In regards to branding, the company can focus on positioning its products in the market to attract many consumers. Even though the industry has experienced different challenges, Tiffany & Co can use differentiation as one of the most appropriate product positioning methods. By applying product differentiation, Tiffany & Co should produce varieties of jewellery products that will enable it to attract many customers. In the long run, the company will attract many customers who are willing to purchase its products. An increase in the customer base will significantly boost the company’s brand image in the market.
Also, the company should focus on a new product development following a research on customers change in taste and preferences. Before launching a new product, the company should ensure that it has adequate knowledge and information about the consumers’ needs and preferences.
Question 2 (7 marks)
Discuss Kodak’s reasons why they have formulated a diversification strategy. Answer this question in 400 words
ANSWER:
Based on the case study, Kodak provided differentiated services including traditional printing, coloured printing and printing services using synthetic chemicals. These contribute to a formulated diversification strategy because customers can choose from the list of printing services. Even though the three services relate to printing, they involve different aspects that can influence consumers’ decision-making. It is important to understand the reason why Kodak formulated a differentiation strategy. The need to attract many customers and to increase its market share is one of the factors that led to the development of a diversification strategy at Kodak. The company offered differentiated printing services to attract many customers who would be attracted by the different methods provided by the company. The impact of the implementation of diversification strategy can attribute to Kodak’s brand image.
Another reason for Kodak’s formulation of a diversification strategy was to offer different products and services that can enable it to increase its market share. The market share of the company can increase depending on the customers that it has in the market. Diversification if one of the factors that enable a company to produce varieties of products that aim at enabling consumers to make appropriate decisions. Notably, diversification and differentiation can enable a company to focus on different categories of products and services. Competition is another factors that led to the implementation of diversification strategy at Kodak. The main aim of the strategy was to reduce the level of competition from the rivals that produced similar products and services as Kodak.
Question 3 (7 marks)
How can Liu Hongxin of Hisense Group effectively manage the integration challenges at Hisense Hiview Tech Company? Answer this question in 400 words
ANSWER:
The main challenge experienced by Hisense is the consistent losses in its Tv subsidiary. Hongxin should start by understanding the segment or the subsidiary that contributes to the increase in the losses reported by the group. In this case, the company should assess the performance of each operating segment for the last five years and to determine their potentiality in terms of profitability and overall impact to the business.
The management should, therefore, identify the segment that contributes to the losses and the overall reduction in the performance of the group. The company cash use key performance indicators such as the total production and total sales for the past three years to determine the actual profitability of the segments.
After that, Hongxin should hire a consultant who is experienced in the particular segment and the production department. The main purpose for hiring the consultant is to determine the most appropriate approach to address the needs of the failing segment. In this case, the company will ensure that it collects all useful information for each operating segment. The information from the expert will enable the company to make a decision on whether to continue with the particular operating department of introduce methods of ensuring that the segment is profitable in the future. If the segment is not profitable in the foreseeable future, the management of Hisense should drop the particular product and introduce others that will meet customers’ needs.
Question 4 (7 marks)
Identify and discuss two modes of entry that have been used by Fitbit when entering foreign markets and explain the reasons behind their international strategy. Answer this question in 400 words
ANSWER:
The main mode of entry that Fitbit used to access international markets was acquisition, involving the purchase of companies that led to the expansion of the Fitbit in different countries. Some of the companies that Fitbit acquired include Pebble Technology Corp, Vector Watch Ltd and Twine health. These companies significantly impacted the entry of Fitbit in different countries. For instance, acquisition of Vector Watch Ltd was an important approach for the company to enter the UK market.
As a result of the acquisition, then company expanded its operations in different countries, and this attributed to its growth as one of the best company is in the production of the devices. The successful use of acquisition by the company shows that it can be applied by other businesses to meet their goals.
Another mode of entry that the company used was partnering with the local organisations for the need to promote the heath wellbeing of the people.
Question 5 (11 marks)
Grameenphone developed strategies to focus on trends in the global telecom industry. How can GP sustain its competitive advantage, through the implementation of Ghemawat’s AAA strategies and what approach should GP take and why? Answer this question in 750 words
ANSWER:
Based on the case study, GP should apply the Ghemawat’s AAA strategies to increase its global value. The first A represents adoption strategies that focus on enabling the company to increase its revenue by focusing on its business elements. In this regard, GP should focus on introducing more products or redoing the products or services that are not doing well in the market to lower the cost of production, leading to an increase in the total output.
The second A represents the aggregation strategies which will enable GP to develop an appropriate and effective economic of scale, thus boosting its value in the market (Open textbook, 2015). In regard to this, GP should focus on opening outlets and operating bases in other countries since this will increase its global value.
The last A is the arbitrage strategy that will enable the company to focus on the international markets and the difference of the regional markets.
Question 6 (11 marks)
The founder of TikTok and ByteDance Zhang Yiming is considered a successful entrepreneur. Discuss in detail the following three characteristics of a successful entrepreneur: having an entrepreneurial mind-set; being alert to opportunities; and the ability to deal with uncertainty. Also indicate how entrepreneur Zhang Yiming demonstrates each characteristic? Answer this question in 750 words
ANSWER:
The development and launch of TikTok shows that the entrepreneur, Zhang has an entrepreneurial mindset. The entrepreneurial mindset can be determined by the ability of the individual to look for opportunities and to turn them into profitable business ventures. Zhang found that short video was one of the best opportunities and made it a business opportunity.
Zhang is an entrepreneur who is likely to risk since no one knew about an app that function like TikTok before, however, he made the app despite the uncertainties that the market would bring. It is essential to note that Zhang is prepared for the uncertainties due to the legal issues that the company may face in regards to security laws.
Also, Zhang IA alert on opportunities and this is attributable to his ability to venture into a market that has less players. Notably, TikTok operates differently as compared to its competitors such as Netflix and YouTube. This is a result of an entrepreneurial mind.
References
Open textbook. 2015. Ghemawat’s “AAA” Global Strategy Framework. http://www.opentextbooks.org.hk/ditatopic/26822