Strategic Management 2015

Tut 4 TR12 Group 6

STRATEGIC MANAGEMENT
BCD 8 REPORT
Class:

Tut4 TR12

Tutor:

Ms. Le Minh Hanh

Group 6:

Pham Thu Thao

Lam Thi Trang

Question: Which of the five generic strategy best fit with the current situation of the company?
Answer:
Low-cost Strategy
Price competition among rival sellers is vigorous => Yes
Products are readily available from many sellers => Yes
Industry products are not easily differentiated => Easily differentiated
Most buyers use the product in the same ways => Yes
Buyers incur low costs in switching among sellers => Low
Large buyers have the power to bargain down prices => Weak
New entrants can use introductory low prices to attract buyers and build a customer
base => Medium ( low prices).
Broad Differentiation Strategy
Diversity of buyer needs and uses for the product => Yes
Many ways that differentiation can have value to buyers => Yes
Few rival firms follow a similar differentiation approach => Yes
Rapid change in technology and product features => Slow
Focused Low-Cost and Focused Differentiation Strategy
The target market niche is big enough to be profitable and offers good growth potential
=> Yes
Industry leaders do not see that having a presence in the niche is crucial to their own
success => KKDs competitors are aware of the niche market.
It is costly or difficult to multisegment competitors to put capabilities in place to meet
the specialized needs of buyers constituting the target market niche and at the same time
satisfy the expectations of their mainstream customers => Might take much time
The industry has many different niches and segments => Yes
Few, if any, other rivals are attempting to specialize in the same target segment => Few
The focuser has a reservoir of customer goodwill and loyalty => Yes
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Strategic Management 2015

Tut 4 TR12 Group 6

Best-Cost Provider Strategy

Product differentiation is the market norm => YES
There are a large number of value- conscious buyers who prefer midrange products =>
YES
There is competitive space near the middle of the market for a competitor with either a
medium- quality product at a below average price or a high- quality product at an
average or slightly higher price => YES
Economic conditions have caused more buyers to become value conscious => LOW
(recessionary period)
KKD should follow Best-Cost Provider Strategy