UofP - MBA580 - DQs - Week Four - 09-18-06

UofP - MBA580 - DQs - Week Four - 09-18-06 - Your initial...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Your initial response is due in the 2 Main news group by the end of the day 09/19/06. Week 4,DQ1 1. Given the nature of its industry and key competitors, how does your company generate a cost leadership competitive advantage (see Pearce and Robinson, pp. 190-193)? If your answer is yes, what are some of the specific risks and rewards it creates in pursuing a low- cost advantage? If your answer is no, would you advise your company’s strategic managers to embrace this approach? Why? Stewart does not allow its strategic plan to employ more than one generic strategy. From research, I learned that Stewart’s view on selecting one generic strategy avoids them being “stuck in the middle” without a competitive advantage. Organizations that select one or more approaches—and then fail to achieve them—get stuck in the middle without a competitive advantage (Marketing, 2006). A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices (Pearce and Robinson, 2006). Stewart’s Strategy—Cost Leadership With this strategy, Stewart’s objective is to become the lowest-cost producer in the industry. Many market segments are supplied with the emphasis placed minimizing costs. If the achieved selling price can at least equal (or near) the average for the market, then the lowest-cost producer will (in theory) enjoy the best profits. Stewart’s cost leadership strategy is one that is usually associated with large-scale businesses offering "standard" products (Pearce et al., 2006) with relatively little differentiation that are perfectly acceptable to the majority of customers. Occasionally, low-cost leaders will discount its product to maximize sales, particularly if it has a significant cost advantage over the competition and, in doing so, it can further increase its market share (Tutor2U, 2006). Stewart can adjust its pricing at the leadership level upon acceptance and approval by state banking and other fiduciary-guideline authorities. References Marketing Teacher. (2006). Generic strategies . Electronically retrieved September 18, 2006, from http://www.marketingteacher.com/Lessons/lesson_generic_strategies.htm Pearce, J. & Robinson, R. (2005). Strategic management (9th ed.). New York: McGraw-Hill. Tutur2U. (2006). Strategy – competitive advantage . Electronically retrieved September 17, 2006, from http://www.tutor2u.net/business/strategy/competitive_advantage.htm Robert (Robb) Sikes 520.245.0662 [email protected]
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Your initial response is due in the 2 Main news group by the end of the day 09/19/06. Week 4,DQ2 2. How well does your multi business company capitalize on its core competencies (see Pearce and Robinson, pp. 219-224)? Explain your response. A major focus in determining a firm’s resources and competencies is comparison with existing (and potential) competitors (Pearce et al., 2005, p. 199). Stewart benchmarks firms in the same industry with relative strengths and weaknesses in—but not limited to—marketing, financial
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern