In a general sense needs wants are related to a products benefits and features

In a general sense needs wants are related to a

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In a general sense, needs (wants) are related to a product’s benefits and features. Having close and frequent interactions with both current and potential customers helps the firm identify those individu als’ and groups’ current and future needs. From a strategic perspective, a basic need of all customers is to buy products that create value for them. The most effective firms continuously strive to anticipate changes in customers’ needs. Failure to do this results in the loss of customers to competitors who are offering greater value in terms of product features and functionalities. In any given industry, there is great variety among consumers in terms of their needs, e.g., high-quality, lower-cost with acceptable quality, quick delivery. Diversified food and soft- drink producer PepsiCo believes that “any one consumer has different needs at different times of the day.” BUSINESS POLICY LEARNING NOTES
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Chapter 4: Business-Level Strategy 4-3 How: Determining Core Competencies Necessary to Satisfy Customers’ Needs As explained in Chapters 1 and 3, core competencies are resources and capabilities that serve as a source of competitive advantage for the firm over its rivals. Firms use core competencies ( how ) to implement value- creating strategies and thereby satisfy custom ers’ needs. Only those firms with the capacity to continuously improve, innovate, and upgrade their competencies can expect to meet and hopefully exceed customers’ expectations across time. 3 Explain the differences among business-level strategies. THE PURPOSE OF A BUSINESS-LEVEL STRATEGY Choosing to perform activities differently or to perform different activities than rivals is the essence of business- level strategy. Thus, the firm’s business -level strategy is a deliberate choice about how it will perform the value chain’s primary and support activities in ways that create unique value. Indeed, in the complex twenty-first century competitive landscape, successful use of a business-level strategy results only when the firm learns how to integrate the activities it performs in ways that create competitive advantages that can be used to create value for customers. Fit among activities is a key to the sustainability of competitive advantage for all firms. As Michael Porter observes , “strategic fit among many activities is fundamental not only to competitive advanta ge, but also to the sustainability of that advantage. It is harder for a rival to match an array of interlocked activities than it is merely to imitate a particular sales-force approach, match a process technology, or replicate a set of product features. Positions built on systems of activities are far more sustainable than those built on individual activities.” TYPES OF BUSINESS-LEVEL STRATEGIES Business- level strategy is concerned with a firm’s position in an industry, relative to competitors. Firms are challenged to select business-level strategies to position themselves favorably by performing activities differently or performing different activities as compared to its rivals. Thus, the firm’s business
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  • Summer '12
  • JeanetteRamos-Alexander
  • Business, Marketing, cost leadership strategy, business-level strategy

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