California Pizza Kitchen

2073 Words Jan 23rd, 2011 9 Pages
A company’s strategic choices shape how that firm will operate and react to the use of its own resources as well as the affects of external factors. Porter tells us that firm’s position themselves by leveraging their strength’s. He argued that strengths ultimately fall into one of two headings: cost advantage and differentiation (Quickmba). CPK chooses and specifically points out differentiation as its main strategy. CPK differentiates itself through product quality through the use of quality ingredients, menu design and innovation, and expanded services and offerings beyond their main dining experience. This all falls under subcategory of differentiation known as “Quality Strategy”, which sets CPK apart from its competitors. CPK …show more content…
A successful differentiation strategy will create customer value that is perceived as such by its customers. Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. CPK differentiates itself through product quality through the use of quality ingredients, menu design and innovation, and expanded services and offerings beyond their main dining experience. This all falls under subcategory of differentiation known as “Quality Strategy”, which sets CPK apart from its competitors. As a result of this quality, CPK has branded itself through a very loyal customer base that consistently markets for the company through rave reviews and word of mouth advertising. Firms that succeed in differentiation strategy often have the following internal strengths (QuickMBA): • Access to leading scientific research • Highly skilled and creative product development team • Strong sales team with the ability to successfully communicate the perceived strengths of the product • Corporate reputation for quality and innovation

Due to high levels of rivalry in the food industry there is always an incentive to be innovative and continuously improve. There is also always the chance that any differentiation could be copied by competitors. Therefore, innovation remains a huge part of CPK’s