Chapter 3, Problem 3ARQ

Explanation of Solution

Competitive Strategy:

The organization replies the structure of the industry by choosing a competitive strategy. It is a long term plan for a company to gain the profit over the other competitive industry. It plays major role when the company is providing similar products like other vendor...

Explanation of Solution

Company that implement each strategies:

Lowest cost across the industry:

The objective of the firm, which follows this strategy, is to generate lowest cost producer across the industry. This strategy will enable the firm to produce large scale production which in turn helps the firm to attain the large economic scale.

Example:

Company which follows the above strategy is given below:

Toyota Company uses the lowest cost across the industry to gain the automotive industry. It successfully differentiates on the basis of design and quality.

Better product/service across the industry:

The objective of the firm, which follows this strategy, is to introduce unique features of the product into the market, which creates a differentiating factor. The firm following this strategy is targeted to achieve market leadership. They assign premium price for the products as they implements high technology features into the products. They manufacture a superior brand and high quality products when compared with the other firms.

Example:

Company that follows the above strategy is given below:

McDonald’s company uses better product/service across the industry. The waiting of customer is not more than one minute...

Explanation of Solution

Falcon Security’s competitive strategy:

The Falcon Security’s competitive strategy contains five forces. They are:

Bargaining power of customers:

It is described as market of output. The customer can buy the products from many suppliers, so the buyer has alternative option.

Threat of substitutions:

The first force is threat of substitution. It affects the customers to found different way of what you do. It uses different technology to achieve the same economic need.

Bargaining power of suppliers:

It is described as market of input. The person who makes the product will sell on the flour...