STRATEGIC MGMT LL CASEBOOK W/CONNECT
4th Edition
ISBN: 9781307485110
Author: Rothaermel
Publisher: MCG/CREATE
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Textbook Question
Chapter 5, Problem 2ESI
How do the perspectives on competitive advantage differ when comparing brick-and-mortar stores to online businesses (e.g., Best Buy versus Amazon, Barnes & Noble versus Amazon, Old Navy versus Threadless [noted in Strategy Highlight 5.2], Nordstrom versus Zappos, and so on)? Make recommendations to brick-and-mortar stores as to bow they can compete more effectively with online firms. What conclusions do you draw?
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Choose an industry or sector which is becoming more and more competitive among FMCG retail OR Fashion. Assess their business strategies in terms of the generic strategies of cost leadership, differentiation and focus they are maintaining? How might the principles of hyper- competitive strategies apply to these industries or sector? Explain how, when and in what ways, interactive and cooperative strategies, rather than direct competition, might make sense to them.
Whole Foods competes
successfully with giant chains
such as Wal-Mart and Kroger
not on price but by
emphasizing superior
customer service, higher-
quality products, a more
extensive inventory of local
and organic products, and a
commitment to fair-trade
suppliers. Its stores are well
organized, attractive and
entertaining. The keys to
success such as superior
customer service, higher-
quality products, etc. that
Whole Foods has built the
company's strategy on are
known as
strengths
key success factors
core competencies
O business strategies
How is success measured when a firm pursues a focus strategy?
Only industry-wide competitors can create similar value for the market segment.
Broad-based competitors choose not to serve that same segment of the market.
It is possible for the firm to pursue low cost and differentiation simultaneously.
Firms are willing to link with suppliers and distributors to manage costs.
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