Assignment

Student Name: Basit Ali Jadoon Registration No: 1935381

Question No. 1
1. Local market segmentation:
Dastkaari can create local market segmentation on geographical segmentation bases. The
reason for geographic segmentation is to select only those markets which are profitable
for firm. Referring to Mehnaz previous statement to cut-off far-off distribution places,
through geographic segmentation, Dastkaari can save its resources and utilize it on more
profitable market with more focus.

2. Action Plan for Competitor Identification:

Dasktaari should use a model of Competitive reality to identify its competitors and
predict their actions in local market. A model of competitive reality is consist of:

 Competitor Analysis:
In competitor analysis, Dastkaari can able to predict the nature and intensity of its
rivalry among competitors. Dastkaari can know extent of competition with each
competitors through two dimension of competition, Market commonality and
Resources similarity.

 Drivers of Competitive Behavior:

Competitive behaviors divers, awareness; motivation and ability, are influenced
by market commonality and resources similarity. Competitive behavior drivers
will influence competitor behavior.
 Competitive Rivalry:
This will define complete scenario of competition among competitors. The
competitive rivalry among competitors affects the performance and position of the
competitors.
 Conclusion:
Through this model, Dastkaari can identify its competitors and predict their
actions in local market.

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 Question No.2:
Restructuring Strategy:
Dastkaari main problem is lack of resources and focus on core businesses to improve its
quality and foundation services. Through restructuring strategy, Mehnaz can create value
by following ways:

 Product Quality:
By improving quality of product, foundation can properly manage its quality
management process by concentrating few products.

 Innovative and Attractive Products:

Dastkaari, by focusing on few products, can come up with innovative and
attractive product in current product range. These attractive products will help
foundation to increase its sales and achieve stability in market.
 Few Profitable Markets:
Dastkaari can generate good profit from few market by managing them
strategically. This strategy will also help to cut-off poor performing market and
eliminate their expenses from oncome statement.
 Reduce Overhead Cost:
By downsizing and downscoping, foundataion can eliminate poor performing
products and cut-down excessive expenses, which are load on foundation income
statement.
 Clear Marketing Strategy for few products:
Dastkaari can form effective and efficient marketing strategy for five good
proferming products to increase their market penetration and sales.

Question No#3:
Cutting Overhead Cost contribution in Value Creation:
Through restructuring strategy, Dastkaari can eliminate excessive overhead cost and
expenses of those poor performing products. This strategy will help Dastkaari to utilize
its resources efficiently and effectively to produce few market-desirable product to
generate great revenue and achieve stability in market. This will also improve production
process of products, for example quality control process.
Moreover, through downsizing and downscoping, extra consumpation of resources for
expenses, like transportation cost; rent and delivery of poor performing products or to
poor performing market, will be eliminated from income statement of foundation.
Subsequently, this strategy will help Dastkaari to achieve good profit and stable condition
in market.

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 Question#4

Competitive level strategy:

Dastkaari should use cost leadership strategy as a competitive level strategy. The case study
already mention Dastkaari is planning to set low cost against competitors in order to penetrate in
market. For penetration, cost leadership is best and favorable for foundation. Low cost product
will attract more customer and subsequently increase its sale.
Corporate-level Strategy:
Dastkaari should use Retrenchment strategy as a corporate level strategy. Through retrenchment
strategy, foundation can reduce its expense and become stable and financially sound.

Vision: To make society where women can utilize their potential at full extent

Mission: To empowered women through entrepreneurship

Question 5:

Vertical Merger:
Through vertical merger, Dastkaari will merge with other organization which offering separate
product or service along the value chain for final product. It can control over other part of its
value chain and utilize it more effectively and efficiently. This will help foundation to control
over its raw material or distribution places.

Vertical Acquisition:
Through vertical acquisition, foundation will acquire other organization which offering separate
product or service along the value chain for final product. This acquisition will help foundation
to increase its efficiency by having control over raw material or distribution network.

Related Constrained Diversification Strategy:

Through this diversification, foundation can utilize many same resources, like transportation,
some function, like marketing and finance functions, process, like collection process. This
strategy will help foundation to introduce many diversified product by using same resources and
function. Thus will help foundation by increasing and controlling expenses.

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