Monday, 16 December 2019

Unit 8: Business Level Strategies


Unit 8: Business Level Strategies  

Buoyed by the encouraging sales, the officials say, Maruti will shortly launch the new campaign based on the ‘Inspired Engineering’ theme.

It takes on from the earlier campaign that focussed on the ‘Feel at home’ theme, which helped establish a strong emotional bond with the target consumer, they say.

The new campaign will focus on Wagon R, a uniquely designed product for people who lead interesting lives.

The product gels with their lifestyle, reflecting their confidence and multifaceted personality.

By sheer excellence of engineering it enables them to be whatever they choose to be — and that is what makes the buyers interested, point out the officials.

According to them, the new positioning “Wagon R — Inspired Engineering” reflects the fact that the car is a piece of unmatched, excellent engineering and that some of the most interesting and discerning people drive it.

“It defied convention and changed the way people looked at a car.

It is simply unmatched in performance and comfort.

Test-drive one and you’ll never settle for anything ordinary again,” goes the caption for one of the print advertisements, while another goes like this:  “There are some people who tower over the others.

They follow their hearts, create their own rules and lead much fuller lives.

The Wagon R is for such people.

The result of inspired engineering, it defied convention and changed the way people looked at a car.
“According to the officials, the new brand positioning is based on research that showed the Wagon R buyer as being balanced, ambitious, discerning, self-assured and intelligent.

At the same time, they have deep-rooted human values.

Thus, they lead fuller lives.

“Thus the new positioning is in sync with the personality of the buyer and the product,” the officials say.

Source: www.   Strategic Management   Business conditions are always changing, so it’s a good practice to periodically step back and take a hard look at the business strategy and analyse its implementation.

Business Strategy can be defined as a long-term approach to implementing a firm’s business plans to achieve its business objectives.

A business strategy addresses how the firm competes in a market and how it attains and sustains competitive advantage.

The term “industry structure” refers to the number and size distribution of firms in an industry.

The competitive position within the segment then needs to be explored, because only this will show how the organisation will compete within the segment.

Cost Leadership Strategy emphasises efficiency.

By producing high volumes of standardised products, the firm hopes to take advantage of economies of scale and experience curve effects.

The product is often a basic no-frills product that is produced at a relatively low cost and made available to a very large customer base.

Differentiation is aimed at the broad market that involves the creation of a product or services that is perceived throughout its industry as unique.

The company or business unit may then charge a premium for its product.

Focus Strategy concentrates on a select few target markets and is also called a segmentation strategy or niche strategy.

Cost Leadership: A strategy whereby a firm aims to deliver its product or service at a price lower than that of its competitors.

Differentiation: Offering a product or service that is perceived as unique or distinctive by the customer.

Focus Strategy: The strategy in which a firm focuses on a specific niche in the market place and develops its competitive advantage by offering products especially developed for that niche.

Industry: A collection of firms offering goods or services that are close substitutes of each other.

Positioning: Occupying a distinct position in the minds of consumers.

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