Contrasting and comparing the GYB and DYB strategies The Destroy Your Business strategy (DYB) entails a strategic plan developed, and implemented by the company leadership, and employees. The plan is to destroy a company 's weaknesses, as well as business units that are less beneficial or do not add value to the enterprise 's performance. The DYB strategy is essential in the sense that if a company does not identify and crush its weaknesses, competitors will use those weaknesses to their advantage. On the other hand, the Grow Your Business strategy (GYB) entails finding innovative ways of reaching new clients and better ways to serve the existing ones. Thus, the DYB strategy helps in completely disrupting the current practices of a business …show more content…
The protection enhances the ability of sustaining a business in a competitive marketplace for the long run. A firm should also undergo the DYB strategy to get rid of business units and other resources that do not add value to the company 's performance. It should adopt the GYB strategy, in which it would utilize the business opportunities lying at its disposal to its advantage. As a direct result of these two strategies, the company would gain a substantial competitive edge against rivals, as well as boost its profitability in the long run (Grimm, Lee & Smith, 2010). Knowing that today 's business environment is characterized by heightened competition that has led to extensive gaps between industry leaders and laggards, and that there are greater churns among the industry rivals, the GYB and DYB strategies are essential for any modern company. More importantly, the GYB strategy should be focused towards the increase of …show more content…
Thus, cannibalization strategy occurs when a newly developed product encroaches on the current market for the existing product, as opposed to expanding a company 's market base. The company could have intended that the new product would appeal to a new market segment and increase market share. However, the new product ends up appealing to the firm 's current market, which results in reduced market share and sales volume of the existing product. At the bottom line, the DYB strategy is far more effective than the cannibalization strategy with respect to the competitiveness, growth and market leadership of a company. It is because the DYB strategy is developed, designed and implemented to boost the business 's competitive advantage. The cannibalization strategy ultimately forces the life of an existing product to end prematurely, as sales shift to a new product, as opposed to tapping into new market segments as intended. One of the examples where cannibalization strategy occurred is when Apple developed the more quality-rich iPods and iPhones that depleted the sales of its lower-end iPhones and iPods, such as shuffle, nano and classic series. These were unintended plans, which also reduced the company 's sales performance. For example, consider the GYB strategy as far better than the cannibalization strategy, as is the case of
Most companies’ primary goal is to maximise profit in order to remain competitive in the market. The concern usually arises in the measures and approaches companies take to achieve that goal and how it will benefit in the short-term and long-term process. (Eccles, 2011)
o Identify and start to fold down businesses that are outside of the company’s core competency.
...strategy when the initial downsizing failed to take them out of the red or gain back lost market share.
And we will purchase capacities when plant utilisation above 90%. This will expand the business size and have a positive impact on economies of scale. Composed with High End and Size products transfer into Traditional and Low End, we have multiproduct in targeted segments. “Higher firm-level ability raises a firm 's productivity across all products, which induces a positive correlation to a firm’s intensive and extensive margin” (Bernard, Redding and Schott 2006). This means with an effective business strategy and management, businesses can boost sales of all products within the segment. With a larger product profile for Traditional and Low End, it works to generate larger market shares. Refer to Graph 4 and 5, Digby sold twice units of products than its core competitor-Baldwin by having Daze and Dixie in its Traditional segment, which drives its segment market share to double Baldwin’s. The boost in sales and market share prove the correct implication of the
...tly governing its scientific and technological company successfully to gain a competitive advantage. These recommendations will help U.S. businesses to rebuild the competitive advantage they once had.
The strategy of BD is to force other competitors to follow to this quality aggression, anticipating the increase of costs of all the competitors in the market, which would be easier for BD to handle due to the high market share that allowed BD to amortize the capital investment.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
“The only way to beat the competition is to stop trying to beat the competition.” (Kim and Mauborgne, 2005, 4). Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim and Renee Mauborgne explains how to overcome competition by creating uncharted markets. The author, W. Chan Kim, is the professor of strategy and international, management at INSEAD, and the second author, Renée Mauborgne is the INSEAD Distinguished Fellow as well as a professor of strategy and management. The authors use the term “blue ocean” as a metaphor for undiscovered markets. This metaphor is juxtaposed to “red oceans” which signify saturated markets. Although the book contains a good foundation and is well-written, the overuse of anecdotes that trick readers into thinking the strategies are fool-proof, the flaws and self-evident content, and the redundancy of the steps and tools, prevent Blue Ocean Strategy from being a good read.
For instance, Harley Davidson may be forced to change their marketing strategy due to the entrance of a new competitor into the market. Second, Harley Davidson has to learn new skills and technologies quickly. For example, technologies are changing rapidly, so it is crucial for Harley Davidson’s business plan to change or alter in order to keep up with innovation. Third, this organization has to effectively leverage its core competencies while competing with its competitors. This is, Flexibility is required for Harley Davidson to learn how to use primary value-chain activities and support functions in the way that allow the organization to produce their products at a lower cost with differentiated features compare to their competitors in the market
of a firm to attain new forms of competitive advantage (Müller, 2011). It is due to these
Sustainable competitive advantage is the point of convergence of a corporate method. It permits the upkeep and change of an endeavor's aggressive position in the business. It is leverage that empowers business to get by against its rival more than a drawn out stretch of time. A game changer is leeway over contenders picked up by offering customers more prominent worth, either by method for lower costs or by giving more prominent profits and administration that defends higher costs. At the point when a firm supports benefits that surpass the normal for its industry, the firm is said to have a game changer over its opponents. The objective of quite a bit of business procedure is to attain to an economical upper hand. (Sustainable Competitive
A successful business strategy will identify changes in the external trends in the market place. Plan out what the company’s future direction is. Set out the goals for the management team. It will identify a vision of where the company wants to be in the future. Keep all employees informed of the direction of the company.
The system adopted by 7-eleven maximizes the threat for new entrants. That’s means that threat of new entrants of 7-Eleven is low. It is because 7-Eleven has already reached economies of scale through maintaining a strong customer base and brand loyalty. Over the years, 7-Eleven has increases their customer and brand loyalty. The access to latest technology and capital investments in the same ensures that the barrier for entries for new entr...