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Assignment Details:

· Please reply to the presented statement(s) below.

Deliverable Length: 250 words (minimum) per reply

ONE:

What are the components of competitive strategy?  Within competitive strategy what is the relevance of a value-chain framework?  What are the implications for customers and the competition?

A competitive strategy is defined as the intentional actions using defined steps that move an organization towards a superior competitive advantage over the other businesses in a similar market segment. The components of competitive advantage are planning, value creation, customer service, financial management, and marketing. The value chain framework was developed by Michael Porter and is a model used to analyze if a company’s activities are creating value and competitive advantage. The relevance of this framework is that it provides a visual way to view the efficacy of the business activities as it pertains to the cost associated with the activities. This provides the perfect view into the company’s profitability (Bespalko, Veklova, Diyanova, & Shtezel, 2018).  

Reference:

Bespalko, V. A., Veklova, E. V., Diyanova, S. N., & Shtezel, A. Y. (2018). Competitive strategies of modern enterprises: Definition, content and results. European Research Studies, 21, 841-851. Retrieved from https://proxy.cecybrary.com/login?url=https://www-proquest-com.proxy.cecybrary.com/scholarly-journals/competitive-strategies-modern-enterprises/docview/2289558754/se-2?accountid=144459

TWO:

Competitive strategy consists of a plan that is used by a company to achieve an advantage over their competitors based on information they learned about the competitor’s strengths and weaknesses and comparing them to their own. Competitive strategy components are cost leadership, differentiation, cost focus and differentiation focus.  Cost leadership gains an edge by lowering costs and maintaining prices. Differentiation seeks to set the company apart from its competitors by creating products that are different.

The value change network is important when a business wants to implement a change and minimize negative impacts to the business.  When change occurs in business that affects employees it is best to have a plan to implement it and allow employees and those affected by the change to be involved in the decision-making process.  When an employee understands the reason for the change and how it impacts them, then they are more likely to embrace the change and become change agents.   Change also affects customers and companies conduct surveys and ask for feedback from customers to determine what changes may need to be made to stay competitive and meet the needs of the customers.

A strategic alliance is when 2 companies agree to an arrangement that will be mutually beneficial while each company remains independent.  Some things to consider is the reputation of each company and what they stand for and the actual product each company provides.  An example of this is my former employer, T-Mobile, who started a reward program that was called T-Mobile Tuesdays.  The reward program offered T-Mobile customers free items and merchandise every Tuesday just for being a customer.  Some of the alliances T-Mobile had was with Domino’s pizza. Unfortunately, the anticipated popularity of the program was miscalculated and Domino’s could not match the demand on Tuesdays when T-Mobile customers attempted to claim their free pizza.  The alliance ended and left customers disappointed at Domino’s and T-Mobile.  To repair their reputation, T-Mobile enlisted Taco Bell and in this alliance T-Mobile customers could get a free Taco on Tuesdays.  This helped because Taco Bell was able to keep up with demand and the offer was valid for 7 days and not just on Tuesday.

Some necessary factors to consider to increase the likelihood of success in a joint venture are that each of the parties must contribute resources and share in the implementation of the project.  They also must share in the opportunities and risks.  This also mean that each party will share the profits if the project is a success.  Because each party may be used to being in charge and running their company it is recommended that a board of directors be appointed that consists of representatives from both companies.  The companies should also discuss how to handle employees that may be reluctant to adopt a more efficient process when performing their jobs because it is a new process that the other company uses.

 

Prakash, P. (2020).  What Is a Joint Venture and How Does It Work?  https://www.justbusiness.com/legal/joint-venture

THREE:

1. What are the components of competitive strategy?  Within competitive strategy what is the relevance of a value change framework?  What are the implications for customers and the competition? Components of a competitive strategy are; Cost Leadership, Differentiation, Cost Focus, Differentiation Focus. Within the competition competitive strategy is important because value chains help transform a product or service and helps increase business efficiency, delivering the most value for a low cost. The implications would be to continue meeting the customers needs to increase customer satisfaction.

2.  Cooperative strategies are the steps taken by two or more organizations to align strategies and resources to achieve a common goal.  Discuss some considerations that must be taken into consideration when planning a strategic alliance. The Business Objective, Competitive Advantage, Core Competency and Risk Mitigation.

3.  What are the critical factors that are necessary in a joint venture to increase the likelihood of success? A joint venture should be flexible, goals should be define and set clear, any agreements and developments should be clearly defined. Vision, Core values, clearly defined outcomes, accountability, and key performance indicators helps to create an effective strategic plan that will help the business in the long run.