Question

Task: For each of the scenarios below, choose the strategy that you believe should be pursued to achieve the best results, and provide a brief explanation of why you believe this is the best strategy.

Choose from theses 5 Generic Strategies : 1. Low-Cost Provider Strategy 2. Broad Differentiation Strategy 3. Focused Low-Cost Strategy 4. Focused Differentiation Strategy 5. Best-Cost Provider Strategy

Scenarios: 1. A new waterfront development project is beginning in a medium-size city. This project will include moderate to higher-end shopping, restaurants, and hotels. Some of these businesses include: Pottery Barn, Ann Taylor, an Apple Store, Sasha’s Dress Boutique, Apostrophe, Bose, Calvin Klein, Cheesecake Factory, Capital Grille, Maggiano’s, the Marriott, and the Westin. The spaces will include a mixture of national chains, and local businesses. The project and the city have been highlighted in national papers for the expected success of the project and renewed attraction to the city. The Sully Hospitality group is determining if they want to open a boutique hotel in this area. What strategy should Sully adopt to develop the type of boutique hotel would best- fit this project? Provide a brief explanation.

2. A new shopping center is being developed – the main anchors are Wal-Mart and Home Depot. The other parcels will include smaller establishments of fast-food and other convenience category businesses. McDonald’s is interested in this project but has to determine how they would approach this location. The options are: 1. Put a McDonald’s Express inside the Wal-Mart 2. Purchase an out-parcel at the front of the project with high traffic volume and build a traditional McDonald’s 3. Purchase an out-parcel at the front of the project with high traffic volume and build a McCafe Which generic strategy should be McDonald’s use to guide this decision? Based on the generic strategy that you believe is most appropriate for this scenario, which option should McDonald’s choose? Provide a brief explanation.

3. The airline industry has seen various players attempt all of the generic strategies. Given the current state of the airline industry and the main surviving airlines, if a company wanted to get into this industry right now, which strategy would promote the best chances for success? Provide a brief explanation.

4. The top five selling brands of tablets in the world are: 5. Acer, 4. Dell, 3. Sony Vaio, 2. Lenovo, and 1. Apple. A new start-up company wants to break into the tablet market; what generic strategy should they adopt? Provide a brief explanation.

Answer 1

1. Sully should adopt broad differentiation strategy to develop the boutique hotel. The new waterfront development project has a mix of local businesses and national chain so a mix of customers will be coming considering a mix of moderate to high end shopping. Thus, a broad differentiation strategy will cater to a more broad set of customers.

2. McDonald should choose low cost provider strategy with purchase of an out parcel at the front of the project with high traffic volume and build a traditional McDonald's. This option would give chance to leverage customer footfalls to the other stores like Walmart and Home depot that also sell on low prices to customers. Also there will be other smaller establishments of fast food and other convenience categories businesses so a traditional McDonald's will be more appropriate choice.

3. The airlines company should choose a focused low cost provider strategy. The company will be providing low cost services to a niche segment of customers thus serving the customers as per their needs and creating a competitive advantage for the airlines.

4. A new start up company breaking into the tablet market should adopt focused differentiation strategy. The company can focus on special segment with specific benefits that are superior to the set of benefits being provided by current brands. The company can differentiate its product from competitors by following a focused differentiation strategy in the tablet market.