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What are the components of competitive strategy?
Competitive strategy- This is the plan that a company makes that is used to have a competitive advantage over the market. This is used as a long term goal. ( Zigu, 2019)
Components-
A: Planning- The planning of a company is the Most Vital aspect that needs to be done. This plan is created at the start of a business and is re-evaluated through out the life of the business. The plan is made up to decide where the company wants to go and any goals it wants to achieve. ( Ingram, 2016)
B: Value Creation-This is the process that the company does to make sure that their product remains on top of the market. It is continually making upgrades and keeping up with the changes in the market. This is done so that the product doesn’t die out. ( Ingram, 2016)
C: Customer service-this is important because keeping the consumers happy is what will keep your company running. The customer needs to have a good experience with your company to make them want to return to the company or buy the product again. They will also suggest your company to others which will increase sales for the company. ( Ingram, 2016)
D: Financial Management- Being able to manage your spending and cost for the company is important. This will help the company complete their goals as well as keeping the doors open. With out this component the company will fail. ( Ingram, 2016)
E: Marketing- Being able to advertise and maintain the consumers attention is crucial. The consumer must know about your company for them to shop with you. This may seem like a costly venture but in the long run it will be worth it. ( Ingram, 2016)
Within competitive strategy what is the relevance of a value change framework? What are the implications for customers and the competition?
The relevance of value change frameworks dictates to the company the ability of the company to be able to change with the times. This means training the workers to maintain the standards of the company as well as the market. This is important because the market is ever changing and must be able to keep up with the times. Being able to do this helps the company keep up with the competition and/or remain ahead of it. The customers will continue to return and reman happy with their purchase.
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.
A strategic alliance is when two or more companies decide to work together toward a common goal. They do not become one big company but remain independent of each other. (ww.businessdictionary.com, 2019) This means that when the companies join this alliance they must be considerate of each other. No one company can have more power then the other and all companies must agree on the decisions being made. It is critical to remember that each company is as an independent company but are working together to achieve the same goal. For example, a beverage company works together with a bottling and a fruit company to produce its products. Each company is its own entity but are working to create the same product.
What are the critical factors that are necessary in a joint venture to increase the likelihood of success?
Joint venture- “ A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits , losses, and costs associated with it. However, the venture is its own entity, separate from the participants’ other business interests.” (Hargrave, 2019)
The one critical factor that is necessary when entering a joint venture is making sure that every party is satisfied with the decisions being made. I say satisfied because not all the decisions are going to make the parties totally happy. Compromises must be made. But it is all for the good of the venture.
References:
Hargrave, M. (2019, May 08). How and When to Set up a Joint Venture (JV). Retrieved from https://www.investopedia.com/terms/j/jointventure.asp
Ingram, D. (2016, October 26). What Are the Key Components to Competitive Success in Business? Retrieved from https://smallbusiness.chron.com/key-components-competitive-success-business-604.html
Www.businessdictionary.com. (2019). What is strategic alliance? definition and meaning. Retrieved from http://www.businessdictionary.com/definition/strategic-alliance.html
Zigu. (2019). Competitive Strategy Definition | Marketing Dictionary. Retrieved 2018, from https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/7394-competitive-strategy.html
