Effective Competitive Approach, Competitive Scope, and Decision Models


Order Instructions: Effective Competitive Approach, Competitive Scope, and Decision Models
PEER RESPONSE 1_DB 770
Deciding on a competitive approach for the company is critical to the process of developing a company’s strategy. Careful consideration must also be given to the company’s competitive scope. Decision models continue to impact strategy development and should continuously be evaluated, and others considered.

Develop a response to the post below highlighted in yellow. Peer responses must include meaningful and substantive contributions to the discussion, and ideally provoke and challenge the thinking of your colleagues. Each reply must be no less than 250 words.

For the peer response, perform the following:
• Develop a summary of one classmate’s discussion on Effective Competitive Approach, Competitive Scope, and Decision Models (no less than 125 words)
• What you agreed with, did not agree with and why (no less than 125 words)
• Support your factual assertions with citations.
• The response should NOT be a critique of the student’s post, nor should you acknowledge if they responded to the question. The purpose is to add value to the post in an effort to continue the conversation;
• The response must demonstrate a substantive discussion;
• Narrative prose only please – no bullet points, numbered lists, or tables.
• Must use 7th Edition APA

Include a references section, and be sure to have in-text citations for the following sources:
• Required Text (required chapters attached)
o At least 1 citation from 2 of the following coursework textbooks (attached to order):
o Gamble: Essentials of strategic management
o Keller: Every Good Endeavor Connecting Your Work to God’s Work
o Krogerus: The decision book: 50 models
o Rumelt: Good strategy/bad strategy
• At least 2 citations from related scholarly journals

Original Task:
Deciding on a competitive approach for the company is critical to the process of developing a company’s strategy. Careful consideration must also be given to the company’s competitive scope. Decision models continue to impact strategy development and should continuously be evaluated, and others considered.

Perform the following:
• Discuss the process of deciding on a competitive approach.
• Discuss competitive scope and the ideas behind the decision.
• Discuss your current decision model(s) and others that are being considered.
• Develop an Annotated Bibliography for the references used in your discussion.

PEER RESPONSE (SS):
Competitive Strategies
Introduction
Robust strategies are essential to operate in a modern competitive business environment in order to create value for shareholders, customers, and society. Executives require an action plan to increase the triple bottom line and build a competitive advantage for the company. The primary use of the action plan is to help the firm achieve the social, environmental, and economic performance objectives. Therefore, when developing a firm’s strategy choosing a competitive approach is very critical to the whole strategy. What makes a difference between success and failures is choosing to develop and implement a focused strategy, which helps the firm concentrate on its selling and marketing efforts. In developing competitive strategies, a company needs to create two focus strategies: differentiation focus and cost focus. This paper discusses competitive approach, strategic thinking, geographic scope, distribution scope, and decision models.
Process: Deciding On a Competitive Approach
In today’s global economic climate, business leaders seek ways to increase their company’s overall competitiveness, which involves making a myriad of tactical and strategic decisions daily, quarterly, and annually. Most often, the competitive advantages present themselves through the business value chain, operational and administrative processes. A company should begin with knowing the key markets and products. Most products in the company might not be profitable, yet they demand too many resources, such as people, time, and money. Therefore, companies that focus on profitable products are strategically positioned to improve their performance. Likewise, the company should evaluate the value chain to clarify its strengths and weakness, which will help in deploying valuable capabilities and resources (Agyapong et al., 2016). Identify activities that do not add substantial value or customer requirements or those not regulated should be changed. The process of evaluating the value chain uses performance data, such as checking efficiency, cycle-time, quality of activities, and timeliness to customers. Evaluating the value chain provides a clear performance picture of the company’s activities to promote, sell, and deliver products through exposing magnitude, type, and location (Pelkey, 2012).
After that, a competitive value chain is designed using decision analysis. Competitor and customer are two unique criteria used for designing value chain competitive advantage. Using differentiated product or service working in tandem is vital for delivering unique quality products. Differentiated products must be unique, valuable, and non-substitutable in the intended market population. This is achieved by filtering customer and competitor differentiated criteria. Lastly, the company needs to recapitulate the competitive decision-making, particularly knowing factors that create business competitiveness, and focus on key market and products. Apart from assessing value chain effectiveness to deliver key products, the company also needs to use effectiveness data in their decision making to create a competitive advantage (Pelkey, 2012).
Strategic Thinking: Deciding On Competitive Scope
Competitive strategy largely depends on the actions taken by business managers to satisfy the customers in order to improve their market position. The competitive scope is classified as narrow and broad scope, where narrow scope typically involves focused strategy on either differentiation or leadership, while broad scope generally involves engaging in differentiation strategy and cost leadership. The cost leadership approach, the company, integrates a set of actions to produce unique goods and services acceptable to customers at reasonable prices (Tanwar, 2013). In cost leadership strategy, the company opts to sell quality products at a price slightly lower than their competitors; hence, the strategy is based on producing standardized products at a significantly low-per cost unit, particularly for customers who are price-sensitive. Meanwhile, differentiation strategy aims at the approach to producing goods and services with better or important to the consumers at an acceptable cost. Differentiated products are unique and distinguishable from competitors, such as having a unique quality product at an acceptable price than available alternative products. A differentiated product is often based on its reliability, reparability, shape, quality, form, durability, style, and design. On the other hand, focus strategy is involved in unique business activities that fit a specific segment of the population. For example, furniture retailer targeting young buyers living in studio apartment (Tanwar, 2013) may adopt focus cost leadership.
Geographic Scope
Tastes, governments, technology, and company strategy influence competition geographic scope. Business locational advantage depends on numerous favorable factors, such as demand conditions, supporting and related industries, firm strategy, rivalry, and structure. The company can choose to compete using a geographically focused strategy, aiming at a particular single market, or using a global strategy targeting all markets. The company adds its value chain to geographically spread activities through the market’s choice based on the coordination of activities, the location, and the economies of scale active management.
Distribution Scope
The distribution scope often determines the channel network utilized to serve targeted customers. The selected strategy depends on the products, with implicit alternatives, such as intensive distribution, selective distribution, and exclusive distribution. In exclusive distribution, the retailer is granted sole rights to serve a particular area to distribute a product. The products are available at all possible retail outlets; all the competing retailers have equal access to the market. Likewise, in a selective distribution strategy, a few selected outlets are given rights to distribute a product in that particular region, which are limited by criteria that permit product manufacturer to choose the specific outlets (Zabanga, 2021).
Decision Model
Organization results are often associated with consequences of decisions taken by the managers since decisions made generate results. The competitive strategy model is used to build a sustainable company’s competitive advantage over its competitors. Its purpose is to define its fundamental decisions guiding its marketing, operating, and financial management strategies. The model provides three strategies, including offensive, defensive, and niche strategy (Gamble et al., 2019). The offensive strategy involves systematically changing relationships to overcome the barriers, which require significant capital to alter or change the competitive structure, anticipate industry, and diversifying in a more favorable market. Meanwhile, the defensive strategy involves accepting emerging competitive market and strategically positioning the company to defend itself against them. Likewise, niche strategy helps the company neutralize or minimize barriers by taking a defensive or offensive position in a reduced area of business activities (Three Sigma, n.d.).
The decision model considered in overcoming a competitive market is Michael Porter’s strategy. The generic competitive strategy involves cost leadership, focus, and differentiated strategy, which every company adopts. Although there is no single model to use in making decisions, it is the best process to vary decision models based on the business situation. With the availability of information in real-time concerning customer behaviors, it is possible to monitor spending patterns and preferences to make better decisions. According to Rosenzweig (2014), “big data and models help overcome biases that cloud judgment, but many executive decisions also require bold action inspired by self-confidence.”

Conclusion
With looming globalization, local companies are facing stiff competition from global corporation entering their market segment. Today, the decision models have captured the attention of all businesses in recent years, enabling them to improve competitive advantage. Emerging technology companies are able to project market outcomes by combining increasingly sophisticated algorithms and vast amounts of data to open up new network channels for improving their corporate performance. To gain a competitive advantage over their competitors, cost leadership, focus, and differentiated strategies are crucial for business activities.

References
Agyapong, A., Ellis, F., & Domeher, D. (2016). Competitive strategy and performance of family businesses: moderating effect of managerial and innovative capabilities. Journal of Small Business & Entrepreneurship, 28(6), 449-477.
Gamble, J., Thompson Jr, A., & Peteraf, M. (2019). Essentials of Strategic Management: The Quest for Competitive Advantage, 6e.
Tanwar, R. (2013). Porter’s generic competitive strategies. Journal of business and management, 15(1), 11-17.
Three Sigma (n.d.). A Competitive Strategy Mode. From http://www.threesigma.com/competitive_model.htm
Zabanga (2021). Distributionscope Strategy. From https://www.zabanga.us/marketing-planning/distributionscope-strategy.html

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