Despite this, Chick-fil-A has posted positive increases in revenue all 40 years the company has been in business, many of which have been double-digit increases. These increases may seem extraordinary, but Chick-fil-A has used a strategy that ensures their success. Another factor which has the ability to have a major impact on profitability is the increasing price of chicken. With the increasing popularity of ethanol based fuels – made primarily of corn – it is becoming more costly to feed and raise chickens, whose main source of food is corn. This new demand for corn has increased the price, which is in turn passed onto the next buyer. It is necessary for Chick-fil-A to address this issue and formulate a plan of action to try to combat these rising costs.
Through this strategy, a strength our company possesses is the ability to offer a premium product for every customer in each segment of the industry. We compete by giving all of our customers the very best, up-to-date products. Another strength is that since we have a premium product line, we are able to charge an above average price to our customers, thus leading to higher profitability in the long run.
There is substantial evidence in the case to suggest that ODI should segment the market based on flock size of the farms and focus their marketing and sales strategy towards farms with more than 10,000 birds. As illustrated in Exhibit 4 of the case study, number of chicken farms with flock size less than 10,000 has vastly shrunk between 1964 and 1969. This trend has continued and it is estimated that between 1975 and
Presents an analysis of performance and position in different dimensions, for example territory, products, etc.
Based on the market trend, it is likely the demand for the disposable lens will increase at the expense of conventional lens. Therefore, the hope to increase the sales through the distributors and the introduction of ‘frequent flyers’ scheme is unlikely to yield much result.
•Profitable: one of the key criterions for selecting the above competitive advantages is that the company can introduce them profitably.
2.Competitive Advantage – It includes the best product of an Organization in the competitive market.
Optical Distortion, Inc. is a company that offers contact lens for chicken. Since chickens’ society has clear hierarchy, they will peck the one did not obey the rules, which is called cannibalism, causing death. ODI’s contact lens for chicken could efficiently reduce this behavior through reducing their visuals.
* Resources and capabilities serve as a source of competitive advantage for a firm over its rival.
This would include human abilities, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.
Strengths include highly innovative product (main competitive advantages over debeaking arriving into savings from reduced cannibalization, trauma elimination, better feed
Considering the marketing segment, we choose the target market from small, medium and large farms. If products are sold to small farms, the sales revenues even can’t cover the cost,
in the international markets. The main objective is to keep the current competitor advantages of
Its high market share means that it will have high bargaining power relative to its suppliers and its low price will also serve as a barrier to entry.
There are two different types of competitive advantage: low cost and differentiation. We will develop them in this part I.