Competitive Advantages of Fmcg Companies

These four generic building blocks of competitive advantage are superior efficiency, superior quality, superior innovation and superior customer responsiveness. These generic fundamentals enable the company to focus on its strengths and competencies and generate competitive advantage through either differentiation or cost leadership. The relationship between the generic building blocks and competitive advantage can be illustrated as

There are many strategies that organizations can incorporate in today’s business environment. An organization can decide to take on a low-cost provider strategy, a focused low-cost strategy, broad differentiation strategy, focused differentiation strategy, and/or a best-cost provider strategy. While all of them have their own unique features and can offer a competitive advantage over its rivals, Competitive Shoes, Inc. decided to incorporate the best-cost strategy into its organization in order to compete against it rivals. By incorporating the best-cost strategy into its organization, Competitive Shoes Inc. felt that they could stay

When pursing a differentiation strategy, the focus of competition is to add unique features in order to

& Amstrong, G, 2012). The most important point of this strategy is "difference". Moreover, that difference has to be valuable, unique and hard to copy. Differentiation advantage can only be achieved when a firm is able to obtain from its differentiation a price premium in the market which exceeds the cost of providing differentiation (Robinson J., 1933). To gain differentiation competitive advantage, the company will have to invest a big budget to its product research and development. However, to remain it is another story. Apple is one of the pioneers in implementing this strategy.

The outstanding products with its brand name will save the cost for marketing and increase the competence in the industry competition.

Competition is a healthy and important part of doing business. It keeps everyone on their toes so to speak. Differentiating your business means defining your company in relationship to the competition. It means continuously making improvements and reinventing yourself. If you want to differentiate your business, you need to look at your business from your client’s point of view. By educating our clientele concerning the use of organic products that leave your skin and hair feeling vibrant and young, Impressions Salon & Spa has taken steps to set ourselves apart from our competitors. Some points of differentiation include: quality, performance and leadership, superior service, and customer support. Creating a differentiation strategy is to develop a Unique Selling Proposition. The Unique Selling Proposition is the biggest marketing weapon and is the key to differentiating your business from others like you.

In increasingly competitive markets, consumers have better choices over where they buy their products. For an organisation to meet its business objectives, it has to find out what consumers require and then identify the best way in which it can satisfy these needs and wants. Creating a competitive advantage can be difficult. A unique marketing strategy with clear objectives is vital to ensure effective promotional activity.

It has been held in the United Brands case that product differentiation acts as a barrier to entry. Product differentiation is the development or incorporation of properties such as pricing, style etc. that the intended buyers of a product perceive to be different from others and therefore desirable. In the instant case the product differentiation has been made by different annual fee for licence of patented product.

differentiation through superior quality of its commoditized low price products whereas a true differentiation strategy is characterized by the creation of a unique product for which a premium price can be charged. Q. 2. In order to implement a

It is appropriate to relate differentiation strategy to the Campbell's Soup Company as the company's goal is very straight forward, which is "Together we will build the world's most extraordinary food company by nourishing people's lives everywhere, every day." Campbell has always focused on providing superior, healthy and nutrition food by expanding their icon brands in simple meals (especially soup). The Campbell's latest plans are to enhance more than 60 percent of its condensed line with product improvements, further sodium reduction, more contemporary packaging,

Speed to Market : The Company identified Speed as a means of attaining competitive advantage in the market. The rapid pace of technology shift meant that the company needs to adapt to changes and bring forth the innovations to succeed in the market.

The Procter & Gamble has vast differentiated products due to its innovation culture. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business (Charan, 2008). The product differentiation allows the P&G to charge premium price for its products and assists to capture market share from its rivals by increasing the product demand.

1. What is competitive advantage, and how does it relate to a company’s business model?

Another generic competitive strategy is broad differentiation strategies. According to Thompson, Strickland, and Gamble, in “Crafting and Executing Strategy”, broad differentiation strategy is seeking to differentiate the company’s product offering from rivals in ways that will appear to a brad spectrum of buyers. A company attempting to succeed through differentiation must study buyers’ needs and behavior carefully to learn what buyers consider important, what they think has value, and what they are willing to pay for. Then the company has to incorporate buyer-desired attributes into its product or service offering

I. Introduction 1. There are several basic approaches to competing successfully and gaining a competitive advantage, but they all involve giving buyers what they perceive as superior value compared to the offerings of rival sellers. 2. This chapter describes the five basic competitive strategy option for building competitive advantage and delivering superior value to customers – which of the five to