15-BUSINESS+STRATEGY+PROJECT - BusinessStrategy Assignment...

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Business Strategy  Assignment On Grand Strategy
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STABILITY STRATEGY 1. Concentration: A firm following this strategy focuses its resources on a single product, in a single market, using one tested technology to ensure profitable growth. Companies adopt this strategy as it is less risky and does not demand scarce additional resources. Example 1: FedEx Fredrick Smith, an entrepreneur identified the opportunity and established Federal Express (FedEx) in 1973. Smith operated flights exclusively for cargo and offered home delivery and pick-up services. The business model was a big hit and there was no looking back for the company. Looking at the success of FedEx many other companies imitated the model. Thus FedEx concentrated on the Courier industry in order to gain the competitive advantage over other players in the market. FedEx differentiates itself from other player based on its delivery process. Example 2: Swarovoski Crystals It provides crystal products to the higher end only. Example 3: Rolls Royce Rolls Royce follows the strategy of focusing on the single market. It manufactures only luxurious car and caters to higher income class. 2. Market Development: This process involves marketing existing products with little modification, to customers in relates market areas. The organization employs different channels of distribution, changes the content of advertising or the medium of promotion. Example 1: HLL’s E-tailing Venture Sangam Direct is a Hindustan Lever Limited initiative in Mumbai to provide home delivery of various FMCG, food and grocery products to the customers directly. The company boasts of a product range of 3500 products including those of its competitors and unbranded products. The customer can order through phone 55550000 or through email sangamdirect.hll@unilever.com and the order are delivered in 24 hours. For 2
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availing free home delivery the minimum order size must be worth Rs 400 else the customer has to pay Rs 20 as delivery charges. Example 2: NIIT NIIT, India’s leading information technology training institute is a good example of a company followed the market development strategy. It started its operation in 1982 when computer education was accessible only to engineers and other science graduates. During 1982-1992, it focused on building awareness about computer careers. NIIT had to change the mindset of the people to make them consider computers as a career option. In 1992, it introduced the “Bhavishya Jyoti Scholarship” for students who secured high marks in the entrance test for its course. NIIT also entered into alliances with foreign universities, these enabled students to get admission into foreign universities fir degree courses at the end of a minimum 2 years of any NIIT course after 12 years of schooling. Example 3: Allen Solly brand to Women’s wear.
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This note was uploaded on 06/09/2010 for the course MARKETING mkt-505 taught by Professor Asadawan during the Spring '10 term at University of Management and Technology.

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15-BUSINESS+STRATEGY+PROJECT - BusinessStrategy Assignment...

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