Crafting & Executing Strategy The Quest for Competitive Advantage Concepts and Cases 21st Edition By Arthur A. Thompson Jr -Test Bank

Managerial considerations for successful strategies serve consumers better while increasing performance. Internal attributes are modified to meet product line changes based on changes in the market rather than vice versa.

Modifying marketing communication to target the most preferred set of physicians would help increase the prescription of drugs, boosting sales and performance, and increasing market share. Relocation or reduced supplier costs might improve profits but would not affect sales performance. Employing drug designers does not add value as the rivals, too, offer drugs with similar efficacy and safety precautions.

A companys strategy is the set of actions that its managers take to outperform the companys competitors with a unique market position and sustained competitive advantage.

A companys strategy is the set of actions that its managers take to outperform the companys competitors and achieve superior profitability. Achieving this entails making a managerial commitment to a coherent array of well-considered moves about how to compete.

Strategy at its essence is about setting a company apart from its rivals and staking out a market position that is not crowded with strong competitors. It aims doing what rivals cannot or do not do.

Strategy is about competing differently from rivalsdoing what competitors dont do or doing what they cant do. Sometimes companies enter strategic alliances and collaborative partnerships to strengthen their market position and competitiveness.

A sales plan that is based on a low price, high cost model usually does not work as it creates a wide gap between investment and realized profits, whereas an attractive mass market plan, diversification of products, positive acquisition, and more visibility in a market are moves to enhance profits.

Every companys strategy needs to have some distinctive and unconventional element that draws in customers and produces a competitive edge. Mimicking the strategies of successful industry rivals and employing diverse practices, not necessarily aligned to a strategy, rarely work.

Mimicking the strategies of successful industry rivalswith either copycat product offerings or maneuvers to stake out the same market positionis certainly not the best at yielding successful results.

Developing new tracking technology would be a unique strategy to address the current issue of losing customers.

Attracting and pleasing customers through cost, quality, and brand image of a product is one of the hows to be considered while devising strategies that are dynamic, unique, and provide sustainable edge over competitors. Usually, only the management is involved in devising strategies.

A well-crafted, well-executed, constantly evolving strategy manages to please customers and shareholders by providing lasting competitive edge. In the process, managers have to take risks and provide concrete solutions in ever-changing markets.

A company achieves a competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces. Strategy, at its essence, is about competing differentlydoing what rival firms dont do or what rival firms cant do.

A companys strategy would include actions to gain sales and market share with lower prices based on lower costs, not higher costs.

A company might tailor a strategy to compete profitably in a new market that has few rivals for its business. But when rivals are already entrenched in a market, sustainable competitive advantage provides buyers with lasting reasons to prefer a companys products or services over its rivals offeringsreasons that competitors are unable to nullify or overcome despite their best efforts.

There are many routes to competitive advantage, but they all involve either giving buyers what they perceive as superior value compared to the offerings of rival sellers or giving buyers the same value as others at a lower cost to the firm.

If a companys competitive edge holds promise for being sustainable (as opposed to just temporary), then so much the better for both the strategy and the companys future profitability.

A powerful strategy leads to a durable competitive advantage that competitors are unable to nullify or overcome despite their best efforts. This involves balancing and excelling in both internal and external environments.

A best-cost provider strategy involves concentrating on a narrow buyer segment and outcompeting rivals by offering buyers more value for their money by providing customized attributes that meet their specialized needs and tastes better than rivals products but at a lower cost.

Basic strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage include a low-cost provider strategy, a broad differentiation strategy, a best cost provider strategy, and a focused differentiation strategy. Charging the highest prices in an industry without offering additional value would not be a successful strategy.

Simply trying to mimic the strategies of the industrys successful companies never works. Rather, every companys strategy needs to have some distinctive element that draws in customers and produces a competitive edge.

Companies usually engage in mass production when the demand is high, which usually renders low-priced products. Mass production would also result in easy availability of products to customers. These are direct results of adopting a low-cost provider strategy. Companies that produce high-quality products for a large customer base use a broad differentiation strategy. Companies offering high-cost specialized products have a narrow market focus with lower volume generation, thereby reducing their bargaining power with suppliers who are supplying specialized materials.

Although building products that are sold at low prices achieves a cost-based advantage over rivals, it is highly dependent on low manufacturing cost of products. A cost-independent pricing would widen the gap between investments made and profits generated, leading to losses.

Long service times between flights would greatly increase the cost of an airlines operation that cannot be nullified by low prices, which would, in turn, lead to losses. Other airlines on the other hand offer low prices by cutting down on costs, internal and external.

Amys Drive-Thru focuses on healthy fast food for non-meat eaters. It caters to drive-through and casual dining customers seeking healthy alternatives and generates profits by offering products and services that rivals do not and by focusing on a narrow customer base.

BloomsJay caters to gay customers, focusing on a narrow customer base and providing a unique holidaying experience. It has adopted a focused differentiation strategy concentrating on a narrow customer segment and outcompeting rivals by offering customers attributes that meet their specialized needs and tastes better than rivals offerings.

The baby products retailer selling unassembled parts made in China is most likely to have the lowest costs, and to pursue a low-cost provider strategy. The other companies are more likely to pursue focused differentiation or best-cost strategies.

A best-cost provider strategy is giving customers more value for the money by satisfying their expectations on key quality features, performance, and/or service attributes while beating their price expectations. This approach is a hybrid strategy that blends elements of low-cost provider and differentiation strategies; the aim is to have lower costs than rivals while simultaneously offering better differentiating attributes.

Adapting to new conditions and constantly evaluating what is working well enough to continue and what needs to be improved are normal parts of the strategy-making process, resulting in an evolving strategy. Strategy features that work with evolving markets would not trigger evolution as long as the firms fundamentals are sound.

Industry environments characterized by high-velocity change require companies to repeatedly adapt their strategies. The companies in industries with rapid-fire advances in technology like electronics find it essential to adjust key elements of their strategies several times a year, especially in a saturated market with ample competitors.

A companys strategy evolves incrementally as management fine-tunes various pieces of the strategy and adjusts it in response to unfolding events. Inevitably there will be occasions when changing market and competitive conditions call for some kind of strategic reaction or abandonment of a current strategy, but a companys strategy also consists of deliberate and proactive (or planned) elements.

A portion of a companys strategy is always developed on the fly, coming as a response to fresh strategic maneuvers on the part of rival firms, unexpected shifts in customer requirements, fast-changing technological developments, newly appearing market opportunities, a changing political or economic climate, or other unanticipated happenings in the surrounding environment. These adaptive strategy adjustments make up the firms emergent strategy.

Managers of every company must be willing and ready to modify the strategy in response to changing market conditions, advancing technology, unexpected moves by competitors, shifting buyer needs, emerging market opportunities, and new ideas for improving the strategy.

Regardless of whether a companys strategy changes gradually or swiftly, the important point is that the task of crafting strategy is not a one-time event but always a work in progress. The strategic vision of a company affects the strategies and changes to strategies are not a set target: they depend on market factors and the companys position.

A companys realized strategy comprises planned initiatives to improve the companys financial performance and secure a competitive edge in combination with initiatives to deal with unanticipated developments and fresh market conditions.

The biggest portion of a companys current strategy flows from previously initiated actions that have proven themselves in the marketplace and newly launched initiatives aimed at edging out rivals and boosting financial performance. This part of managements action plan for running the company is its deliberate strategy, consisting of proactive strategy elements that are both planned and realized as planned.

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