CHAPTER I
INTRODUCTION
Everybody is looking for prospects, clients and customers. In this challenging new economy you need every advantage you can get, especially in business. It is one of the crucial things that company should have as it is an advantage over competitors gained by offering consumers greater value providing greater benefits of product. However, we have to learn more of this advantage to create a competitive business strategy in order to answer the constantly increasing market competition (Grant, 2010).
The company should have their own advantages to lead the competition and be well known to people that will lead in earning high profits as it is very important to study and formulate unique advantages to have edge with other company.
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Differentiation strategy is where a company decides to choose a certain attribute of the product to focus on. In order to make this strategy work you have to select an attribute that a big enough section of the market care about enough in order to pay a premium price for your product. The second strategy is the cost leadership where the company has decided to create the cheapest product on the market. This strategy requires the product to be commoditised and take advantage of the economies of large scale. Usually there can only be one cost leader within an industry. When you choose the cost leadership strategy, you must ensure that your product meets the minimum requirements of the market. If your product does not meet these requirements, you will be forced to drop your prices even lower (Brown, …show more content…
Folded and Hung is known to other people because of their different designs and styles. Identifying the best advantages over other boutiques to be recognized by the public will be a great source of revenue for the store.
Folded and Hung faces a new challenge because of the entry of H&M, Uniquelo and Forever21. The Store Manager Mr. Mark Anthony Bolando approved the researchers request to do a study about Folded and Hung to help him know what to improve with their products in order to retain their existing customers and to attract new customers.
The research entitled “Perception of Customers on the Differentiation Strategies of Folded and Hung in SM City Bacoor: Basis for Competitive Advantage” aims to help develop better competitive advantage for Folded and Hung over other
Adopting a strategy of differentiation makes firms provide products and services what are distinct in some way valued by customers.
The other problem people face with many other online clothing retailers is the inconvenience caused if they need to return a product. With our service, the customer does not pay the price for the product and has considerable amount of time to come to a decision as to whether or not to buy the product. This removes any remaining doubt in the customer’s mind and increases customer confidence levels.
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
It may be surprising to some to find out that Old Navy is owned by The Gap, Inc. It may be even more surprising to find out that not only does Gap own Old Navy, it owns Banana Republic and Intermix as well. Some may ask themselves why one corporation owns so many different clothing retail stores. The answer is very simple. Every retail store creates an identity for its customers. Everyone asks themselves before starting any day, “What am I going to wear today?” Our clothes are important to us, not just because they cover us and keep us warm, but because they allow us to express ourselves. Our wardrobes gives us identities. Through comparison with some of its sister brands and analysis of its ads and spatial design, it is clear to see that Old
Ron Johnson spent a great deal of time and money to promote his ideas of “stores-within-stores” by turning floor space into an area to house several branded boutiques. He did this in order to attract a target market of a wider demographic which includes age, gender, and generation. One of the m...
In today’s world, it’s hard to compete for accompany that don’t known well their competitors. It ‘s like walking blind into a fire. For instance, knowing a great deal on what a competitors is offering in term of products can help a company to differentiate it’s product and make it more appealing for the customers. If the competitor’s products have weakness, one could build a better product without the same weakness the competitor had and from there gain competitive advantage. Furthermore, knowing the price of the competition can allow one to set competitive prices as
Companies are constantly reinventing themselves in the name of profit. There are a number of different strategies companies implore to create success. Whether it is the expansion into international markets, new technologies, or sustainability the goal is to create a strategy that allows the business to successfully compete. There are numerous strategies capable of generating abnormal profits or can take a company into bankruptcy. The spectrum holds no magic formula as a variety of resources and capabilities are necessary to successfully compete. What works or is frowned upon in one market can become a cash cow in another. The constant is embracing strategic management and business
...h a vast variety of it. Companies can be unique by simply using a collection of products or processes setting them apart from competitors.
Studies and analyses regarding variations between companies performing higher or lower regarding their marketing practices has helped out to assure that a central textbook marketing strategy principle; which is to achieve success regarding that in the long term the products and services of a firm have to be well ‘positioned’ in the market. This paper aims to highlight the common formulations or ‘anatomies’ for strategies and the isolation of some of the most important inclusions that were thought to be really important in achieving success. Just to bring some “flesh on the bones”, this article examines the method through which theory is translated into practice.
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
of a firm to attain new forms of competitive advantage (Müller, 2011). It is due to these
The sign of moving products promptly from a designer’s table to the retail sales floor has swayed the whole global retail commerce and enticed rivalry. Customers value a “new look” that can be worn for this instant and assess the goods as a monetary fortune; not something that you will keep
Competitive strategy is the approach that an organisation takes in order to gain advantage over its competitors. According to Porter, there are two major sources of competitive advantages: costs and differentiation. Cost-based competitive advantage involves reducing production costs so that an organisation can earn higher profit margin or offer products at lower price compared to competitors. Differentiation-based competitive advantage involves offering unique properties that are not offered by competitors’ products. Differentiation allows an organisation to charge a premium for their products because they offer additional benefits to buyers.
If a firm is able to successfully construct a value-creating strategy, then they will have a better chance of gaining a competitive advantage. According to Barney p. 102, “a firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors.”
In order for a firm to compete within its industry, it must plan and relate to the industry