Strategic groups and competitor analysis , management homework help

Strategic groups and competitor analysis , management homework help

INSTRUCTIONS: Please RESPOND to this answer from the Point of view as a student. Use credible sources and respond as if you are a manager of a marketing agency. Tell this student what your agency would think of each of these answers:

Strategic group is a concept used to help companies understand competitors within an industry. “A strategic group is a subset of firms that, because they have similar strategies, resources, and capabilities compete against each other more intensely than with other firms in the industry” (Carpenter & Sanders, 2008). For example, Starbucks, Dunkin Donuts, and Peet’s Coffee is a strategic group, because they all hold similar strategies and compete with one another with delivering great customer service and serving delicious coffee. Some characteristics of strategic groups include pricing, marketing quality, service, size, style, design, and more. The attributes of the vehicles in our SSM, like style, safety, interior, and size, can be viewed as characteristics of strategic groups.

Before mapping out strategic groups, you need to find the differentiators between the firms. Analyzing market segmentation can help identify differentiators. Porter’s four-step approach is used to make predictions about competitors by researching their strategy, objectives, future behaviors, resources, and capabilities. Also, the communication between top executives and shareholders is valuable, because it can give us insight on their next move. Leadership, focus, and differentiation are the generic strategies part of Porter’s four-step approach. In order to achieve leadership strategy, the firm can increase profits by reducing costs, while charging industry-average prices. Another option is by increasing market share through charging lower prices, while still making a reasonable profit on each sale because you’ve reduced costs. Next research and development can help accomplish the differentiation strategy. Also, the firm’s ability to deliver high-quality products or services can help with differentiation. As we noticed through the SSM, marketing helps increase sales, which gives a company a differentiated offering (MindTools, n.d.). The focus strategy can be achieved when firms focus on adding value to your product or services. For example, spending more money on the minivan to make it safer and better quality for their customers is part of the focus strategy.

Scenario planning is a tool that can be used after performing a SWOT analysis. Since a SWOT analysis is more general, scenario planning can help provide direction when changes are occur. There are six steps in scenario planning: 1) define target issue, time frame, and scope of scenarios, 2) brainstorm a set of key drivers, decision factors, and possible scenario departure or divergence points, 3) Develop the framework by defining two specific axes that should represent two dimensions which provide the greatest uncertainty for the industry, 4) Flesh out the pictures and show detail on how four worlds would look in each scenario, 5) specify indicators that can signal which scenario is unfolding. These can either trigger points that signal that the change is taking place or milestones that mean that the change is more likely, and 6) Assess the strategic implications of each scenario (Carpenter & Sanders, 2008, p. 123). I think scenario planning gives a different perspective on the company and allows the company to be able to integrate changes and uncertainties in a strategy.

Kirstie

References

Carpenter, M., Sanders, W. (2008). Strategic Management: A Dynamic Perspective. Upper Saddle River, N.J: Prentice Hall.

MindTools. (n.d.). Porter’s Generic Strategies: Choosing Your Route to Success. Retrieved November 05, 2016, from https://www.mindtools.com/pages/article/newSTR_82….