Question

Which of the following best describes the generic competitive strategy that company management intends to use for AC Cameras during the next three years? What evidence is there to indicate that pursuit of this strategy is currently on track?

1.The company will employ a global low-cost leadership strategy and pursue a competitive advantage keyed to having lower costs and selling both regular and special contract cameras at low prices relative to rivals.

2.The company will employ a global differentiation strategy that sets our AC Cameras apart from rival brands based on such attributes as a higher P/Q rating, more models, more advertising, longer warranties, retailer support, sales promotions, or website displays.

3.The company will employ a global best-cost or "more value for the money" strategy (e.g., providing 5-star AC Cameras at lower prices than other 5-star brands) where the competitive advantage is an ability to incorporate appealing attributes (higher P/Q, more models, longer warranties) at a lower cost than rivals.

4.The company will employ a focus strategy for AC Cameras aimed at:

5.The company will pursue a combination of the above strategies because our approach is not well-matched with any of the generic competitive strategies.

6.Our company has no consistent competitive strategy — we prefer to "re-invent" our strategy each year to pursue whatever opportunities look most promising. Our plan over the next three years is to continue our "opportunistic" approach to strategy and not commit the company to any long-term strategy or any specific market focus. We like this strategy-for-a-year approach and believe it works well for us.

Answer 1

Answer to part 1- Low cost strategy focuses on producing the quanity in large scale and reducing cost per unit of the product which makes it easy for cost minded people and attracts that range of customers for eg- china dumping its products all over the world by reducing the cost and making it availabe at a very cheap rate

Answer to part 2-  global differentiation strategy this strategy is for company who want to stand apart from the compitetion on the basis of their uniquness and are wiling to take risk and attract only few sections of the world and make money rather than wanting to be everywhere all over the world

Answer to part 3- Here the strategy is to provide the same product of the rival but at a cheaper rate, i.e no increase in quality than the rival but only cost cutting. This will definetly attract cost minded people to shift their product loyalty towards the cheaper one

Answer to part 4- Here the focus is to attract as many customers and increase the sale by focusing on one particular section and making sure that that particular section purchases only this product

Answer to part 5- Combination of the above stratergy is very essential as one wrong move can change the entire product market and make it difficult for the company to even sustain

Answer to part 6- this approach may be profitable for short tenure but wont work in long run as you cannot take year to year decison depending upon the situation of the world, its essential to have the moves and strategies ready before hand