Porters Five Forces Applied for Costa Essay

Their strategy is combined in their company’s culture and core values which will not substitute

A Broad Cost Leader strategy maintains a presence in all segments of the market. The company will gain a competitive advantage by keeping R&D, production and material costs to a minimum, enabling the company to compete on the basis of price, which will be below average. Automation levels will be increased to improve margins and to offset second shift/overtime costs.

Initial Capital Requirements: - Huge initial development period and very high investment costs, tooling costs, and WIP are necessary even before the company starts

He invented Generic Competitive Strategies that are vital to compete in any industry. His strategies are: cost leadership strategy, differentiation and focus, which is divided into cost focus and differentiation focus. If one company is to follow the cost leadership strategy, it should try to increase its profits by reducing costs and charging average prices. The differentiation strategy is an opposite way – the company that follows this strategy often has higher prices for its services, but it is different and more attractive than its competitors. Focus strategy means that the company that follows it concentrates on some niche market. The division of focus strategy means that one companies can try to be successful in cost leadership, while focusing on a niche market and other companies will follow differentiation strategy.

34) The __________ method breaks down when evaluating projects in which the sign of the cash flow changes.

Kudler needs to find a way to know the business of its supplier or its distributors, so as to reduce cost and the uncertainty that comes with doing business with them. In doing so, they stand a better of surviving at long run in the market they intend to dominate-one stop shop. Kudler need to employ the porter 's model so as to be competitive. Kudler needs to analyze the threat of new competitors, the bargaining power of suppliers, the bargaining of its customers, threat of substitute product or services and rivalry among existing firms in the industry (Turban 2003). From the products they offer, they have incorporated the bargaining power of customers into consideration and providing substitutes in the same product line. The business level strategy should be a mix of cost-leadership strategy with differentiation strategy built in. In doing so, they are positioned to always increase their earnings. In cost leadership, it requires firm to carry out its activities more efficiently than competitors, passing some of the cost savings to consumers in the form of lower prices (Gomez-Mejia 2002). A differentiation strategy requires a firm to continuously invest in the creation of new products or add new features to existing products so that customers believe the products differ from those of

Predication: On 12/26/16, Asset Protection Manager(APM) was contacted by APM Mario Garay regarding Customer Service Associate(CSA) Deisha Porter who was suspected of ringing up a gift card without placing any funds into the register.

Corporate-level strategies are liable for market definition; they address the entire scope of the business. This strategy helps a business to diversify its service. It gives them direction in which geographic region they should operate and which service markets to strive in. “Thus, an effective corporate-level strategy creates, across all of a firm’s businesses, aggregate returns that exceed what those

Costa can only be as successful as the plan it implements. Saving the world from mediocre coffee and unsustainable practices are goals that must be attained.

The five generic competitive strategies are low-cost provider, broad differentiation, focused low-cost, focused differentiation strategy, and best-cost provider strategy. According to the textbook, “a company’s competitive strategy deals exclusively with the specifics of management’s game plan for competing successfully” (Gamble, 93).

Applying our knowledge about Economics of Strategy, we know that there are different ways to create additional value:

There are five generic business strategies that companies choose from when trying to successfully compete within their respective industries. This is the first choice a company must make, even before deciding an overall strategy. These generic business strategies include low-cost provider strategy, broad differentiation strategy, best-cost provider strategy; focused strategy based on low costs, and focused strategy based on differentiation. These strategies have many advantages as well as disadvantages. Choosing which one to use depends on what market position a company wants to pursue. Deciding to be more offensive or defensive also plays a role in choosing a

Chapter Five describes the five basic competitive strategy options – which of the five to employ is a company’s first and foremost choice in crafting overall strategy and beginning its quest for competitive advantage.

Porter’s generic strategies describe how a company attains competitive advantage across its chosen market scope. There are three generic strategies-cost leadership, differentiation and

To be the best cost provider .Train and develop the team’s capabilities and competencies to make them technically prepared to implement the new strategy.