1 Competitive Rivalry If you have many competitors offering

#1. Competitive Rivalry

If you have many competitors offering equally attractive products and services, then you’ll most

likely have little power in the industry. If suppliers and buyers don’t satisfy their needs by doing

business with you, they can simply go elsewhere. On the other hand, if you are meaningfully

different from your competition, and can sustain that advantage, then you may have more

power.

1. What is the level of competitive rivalry in today\'s environment (circle one)?

Low / Medium / High

What are your top 3 reasons for the response you gave?

2. What will be the level of competitive rivalry in 3-5 years (circle one)?

Low / Medium / High

What are your top 3 reasons for the response you gave?

3. What moves are your key competitors likely to make in the next 3-5 years?

4. What strategic moves do you need to make in the next 3-5 years?

I already solved the number 1 and 2, but 3,4

Thanks

Solution

3. What moves are your key competitors likely to make in the next 3-5 years?

Competitive Moves that are likely to be made by suppliers

Technology will be a major part of their operational strategy. Competitors are likely to leverage technology extensively in order to improve their relationships with the businesses who\'s supply chain is dependent on them. Competitors are likely to use e commerce technology and supply chain aggregators like Alibaba for sale, procurement, vendor management, pricing strategies, global sourcing and global procurement. So suppliers won\'t just leverage technology to improve sales and relationships but they are also likely to focus more on a global strategy than a regional strategy.

Competitive moves that are likely to be made by procurers

4. What strategic moves do you need to make in the next 3-5 years?

I would need to have a reactive as well as a proactive strategy to make in the next 3 -5 year. I will need to react to my competitors by adapting technology more rapidly and setting myself up for a global supplier and procurement strategy. However in order to stay ahead of the curve i will also have to improve sourcing and logistics. I will need to gain a competitive advantage by balancing cost leadership, cost focus and product differentiation.

Competitive Advantage through Cost Leadership and Cost Focus

Internationally (in Asia Pacific and emerging markets ) Ford plans to use Cost Focus as its business strategy.

This is a competitive strategy which competes by using aggressive discounts that increase sales and helps the organisation acquire new customers. When a business launches a product or a service at a discounted rate or a low price and then increases it or removes the discount over a period of time as the product or the service market saturation increases. Traditionally e commerce companies use price or cost strategies. Marriott implements this by offering highly competitive rates in the hotel industry. They do this by reducing costs and improving efficiency so that the value can be passed down to consumers.

Competitive Advantage through Differentiation and Differentiation Focus

Domestically (in the United States, Europe and North America) Ford plans to use differentiation as its business strategy.

This is a strategy where organisations gain competitive advantage by differentiating themselves through their core offerings or products and services and the unique value that they being to their clients or customers rather than competing with prices cuts and discounts. A typical example of a non price strategy would be to follow a product differentiation strategy instead of a price differentiation strategy. Product differentiation plays a major role in strategy. By clearly communicating the value you add to a customer\'s life, and by being realistic and accurate in defining that core competency or core value curve of that the product brings to the customer\'s table. selling the product would be far more easier as it no longer needs to compete purely through its marketing strategy but it can also compete through product differentiation.The decision making process of a consumers depends on the quality, price and accessibility of a firm\'s products or services. Price isn\'t the only factor. There are other factors and areas where the firm could add more value and thats where differentiation comes into play. Disruption is also a by product of differentiation.