Question

An important element in strategy development is attempting to anticipate how a competitor might respond to your changes in strategy(ies). Select a company and a product you use/ are familiar with that has a similar competing item made by another company (Under Armour versus Nike, Campbell versus Progresso, Allstate versus State Farm).   What might these two companies use as strategies to get you to buy their product? Use concepts from the reading and additional source(s) beyond the reading for support. Consider the long-term consequence of the strategy(ies) you describe for-profit and company growth.

Answer 1

We will consider Under Armour versus Nike in our analysis to understand the strategies use by these companies to attract customers. Both these companies deal in selling athletic products. The companies might use the following strategies to attract customers:

Differentiation: While both the companies offer athletic products there is varied difference between these two companies. The companies can use these strategy to sell unique and attractive products which attracts many high profile customers

Pricing strategy: The companies can use these strategies to provide customers with best prices as compared to other without comprising on quality

Advertisement: The companies can have a celebrity brand ambasador to endorse its products. Customers tend to get attracted and buy products which are endorsed or recommended by their favourite celebrities

Festive Sales: The customers tend to get attracted to the brand which provides best festive sales in form of discount, cashbacks and so on.

Focus Strategy : The companies can open new outlet by doing certain researches of its customers and accordingly based on geographic area open outlets which provide cost benefit to the companies.

After Sale Services: Companies which provide after sale services like guarantee or waranty to its customers attracts a huge number of customers. The companies should work on improving after sale services to attract more customers.