Monday, November 26, 2007
Google Kicks Up!!
Google is one of the search engine companies most compatible in the market. They have positioned themselves as leaders in this industry. I believe that some future scenarios that can become a threat for the company would be the competition that is being generated from some other companies such as Microsoft, Yahoo, and others. These competitors are also positioning in the market gaining a lot of credibility from its customers. These engine search companies are not only becoming stronger in but are also coming with some new products that implement some challenge on Google. We clearly know that the income or revenue from Google is directly connected with their search engine service that they provide this is why if other companies come and take part of the market share, in the long run this can get to the point that Google is going to loose many users of the service. The probability of this scenario to happen will be 60% because Google has realized this threat and they are starting to apply strategies to diversify their products like the new that they are initializing by the beginning of next year. Another scenario would be the lack of diversification when referring to products provided by Google. There are small companies that are providing new products that call the attention of users and little by little are taking part of the market share. The probability of this scenario to happen will be 90%. Actually Google is experiencing this threat right now this is why they are featuring a new service at the beginning of 2008. This new product offers its customers the feasibility to store any type of data into the hard drive of Google’s company. I think that Google can attain again market share that has been lost.
Monday, November 12, 2007
Competitive Advantage as a Winning Game
There are many forms in which a company can accomplish competitive advantage over its rivals. Some of the most reliable are definition of the market, niche dominance, market share, and governmental protection.
Wal-Mart has accomplished competitive advantage over its rival by defining the market. If we look at this company we can clearly see that they have acquired their competitive advantage based on their "always low prices" strategy. By offering this great deal to customers they had set their market in an efficient way. Wal-Mart not only offers low prices but good quality gaining competitive advantage over K-mart. I think the strongest strategy that they have adapted to gain competitive advantage is their inventory system; JUST IN TIME inventory. This is the strategy that has lead them to be the most successful company in the low price range of hypermarkets segment.
Then we have credit card companies such as Discover and American Express that have acquired competitive advantage based on the benefit that they offer their users by giving frequent flyer miles by dollar amount expenditure. We can clearly see that this great benefit has positioned them as companies that not only offer great service but on top of this they provide this extra gain.
We also have production companies on the TV industry that have competitive advantage over news, and soap operas with their mini series shows. HBO is a clear example of the competitive advantage that dominates the market and they also obtain a high sales and market share because they call the attention of viewers.
And finally we have pharmaceutical companies such as Pfizer that has competitive advantage over Johnson & Johnson. Based on for their recognizable patents they exercise the back of governmental protection because they help society. This competitive advantage has many advantages over a long period of time this is why it is very important for a company to position their market with quality, benefit, and cost. Pfizer offers all of these qualities in all the products that they offer and on top of these characteristics have the protention of governmental agencies.
Wal-Mart has accomplished competitive advantage over its rival by defining the market. If we look at this company we can clearly see that they have acquired their competitive advantage based on their "always low prices" strategy. By offering this great deal to customers they had set their market in an efficient way. Wal-Mart not only offers low prices but good quality gaining competitive advantage over K-mart. I think the strongest strategy that they have adapted to gain competitive advantage is their inventory system; JUST IN TIME inventory. This is the strategy that has lead them to be the most successful company in the low price range of hypermarkets segment.
Then we have credit card companies such as Discover and American Express that have acquired competitive advantage based on the benefit that they offer their users by giving frequent flyer miles by dollar amount expenditure. We can clearly see that this great benefit has positioned them as companies that not only offer great service but on top of this they provide this extra gain.
We also have production companies on the TV industry that have competitive advantage over news, and soap operas with their mini series shows. HBO is a clear example of the competitive advantage that dominates the market and they also obtain a high sales and market share because they call the attention of viewers.
And finally we have pharmaceutical companies such as Pfizer that has competitive advantage over Johnson & Johnson. Based on for their recognizable patents they exercise the back of governmental protection because they help society. This competitive advantage has many advantages over a long period of time this is why it is very important for a company to position their market with quality, benefit, and cost. Pfizer offers all of these qualities in all the products that they offer and on top of these characteristics have the protention of governmental agencies.
Monday, November 5, 2007
Strategic Success!!!!
Strategic management is a very accurate measure for the good performance of operations and short and long term success of any particular company. According to the effectiveness of the main issues that strategic management such as cost leadership, differentiation, and focus, we can predict and analyze the foundation that the company builds in the market.
Macy’s being one of the biggest retail department stores in the U.S demonstrates the big benefit of having strategic management as one of the most powerful tools in the functioning of the business. For example, this department store differentiates from other department stores because they have positioned its cost leadership within the industry on the minds of its loyal customers. Their prices range and market every single need of customers. We can clearly find high, medium, and low prices that market each customer in this specific industry. It has reached an competitive advantage among other department stores because it does not only provides variety of prices depending the income of its clients but also offers quality that people perceived and this is equal to loyalty. I also think that the best strategic management tool that Macy’s has is their strength in marketing, this basic but important tool has taking them to be one of the biggest department store.
Then we have Target that also proves the point that cost leadership plays an important role in its functioning. This company has positioned their prices in a way that offer not only the benefit of acquiring inexpensive products but also quality that customers of every social class look for. For them their strategy has to do with the trend of the current market such as propaganda and fashion designers that call the attention of the customers in the marker.
Finally, we have Marshall’s; another big department store that have use this special management tool to call the attention of customers that are looking for low pricing without forgetting the fact of quality and name branding. They do not have a strong marketing campaign but word of mouth has taking them to position in the market of department stores in a high range and has helped them to focus in this specific market segment.
Clear cost leadership, differentiation, and focus are very reliable to measure the performance of management practices that successful companies like the ones mentioned above have acquired to become successful in the retail department industry.
Macy’s being one of the biggest retail department stores in the U.S demonstrates the big benefit of having strategic management as one of the most powerful tools in the functioning of the business. For example, this department store differentiates from other department stores because they have positioned its cost leadership within the industry on the minds of its loyal customers. Their prices range and market every single need of customers. We can clearly find high, medium, and low prices that market each customer in this specific industry. It has reached an competitive advantage among other department stores because it does not only provides variety of prices depending the income of its clients but also offers quality that people perceived and this is equal to loyalty. I also think that the best strategic management tool that Macy’s has is their strength in marketing, this basic but important tool has taking them to be one of the biggest department store.
Then we have Target that also proves the point that cost leadership plays an important role in its functioning. This company has positioned their prices in a way that offer not only the benefit of acquiring inexpensive products but also quality that customers of every social class look for. For them their strategy has to do with the trend of the current market such as propaganda and fashion designers that call the attention of the customers in the marker.
Finally, we have Marshall’s; another big department store that have use this special management tool to call the attention of customers that are looking for low pricing without forgetting the fact of quality and name branding. They do not have a strong marketing campaign but word of mouth has taking them to position in the market of department stores in a high range and has helped them to focus in this specific market segment.
Clear cost leadership, differentiation, and focus are very reliable to measure the performance of management practices that successful companies like the ones mentioned above have acquired to become successful in the retail department industry.
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