Business Research For Decision Making Unit 5 DB & (Peer Responses)

Jason Heyland

Business Research for Decision Making: MGT600

Unit 5 Discussion Board – Part 1

 

            When managing or owning a business it’s important to be competitive in the market to which your products belong.  In order to be competitive, the business needs to have a strategy that is competitive and be able to maneuver seamlessly within the market.  Let’s take a look at the potential components that would make a competitive strategy.  The strategy is simply any policies and/or procedures that is put in place to gain a competitive advantage over other similar products on the marketplace.  

            Some of the components of a competitive strategy are cost leadership, differentiation strategy, best-cost, and market niche (iEduNote 2023).  Each strategy presents an opportunity to better position your products over the competition.  Cost leadership is providing the lowest cost for a particular product in an industry.   Differentiation is simply making a product that is different from other similar products that are offered by the competition.  Best cost is having a product with the best value for the price.  And niche is offering a specific product in a specialized group of consumers.  A good example of this could be flood insurance, as only people of the geographic niche market of a flood plain would require such an insurance plan. 

            Value change framework is relevant as it helps to determine positive vs negative efficiency in cost.   You want to ensure the things the company is spending money on is providing value to the customer base in which it serves.  If they find that they are spending significant money on something that is not providing a return on its value it could be decided to not pursue those efforts any longer. 

            As far as implications for the customers and competition.  They are the ones that will help determine if a company needs to make any changes in terms of value change framework.  The customers help to steer these types of decisions as it’s their buying power that lets the market know what’s in demand is what’s not.  For example, if the marketing plan isn’t providing value to the customers and driving them towards their products the company may want to consider changing the framework as to gain the attention and provide value to its customer base. 

*I will cover questions two and three during week two of Unit 5. 

            

 

References

iEduNote (2023). Competitive Strategy: Four Types of Competitive Strategy. Retrieved at 

             https://www.iedunote.com/competitive-strategy