EBK STRATEGIC MANAGEMENT: CONCEPTS
4th Edition
ISBN: 8220106797259
Author: Rothaermel
Publisher: YUZU
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Chapter 5, Problem 2ESI
How do the perspectives on competitive advantage differ when comparing brick-and-mortar stores to online businesses (e.g., Best Buy versus Amazon, Barnes & Noble versus Amazon, Old Navy versus Threadless [noted in Strategy Highlight 5.2], Nordstrom versus Zappos, and so on)? Make recommendations to brick-and-mortar stores as to bow they can compete more effectively with online firms. What conclusions do you draw?
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Students have asked these similar questions
What are the two main sources of competitive advantage that a company might want to pursue
(according to Grant 2016)?
Select one:
a. Cost advantage and differentiation advantage
b. Low cost and high cost
C. Sales volume advantage and added value
d. Broad market advantage and narrow market advantage
For problems 1-3, please refer to this article on Ocado.
https://www.bbc.co.uk/news/business-54352540
1. What can we say about existing rivalry in the market of online retailers?
a. This force is week because of strong brands and stabile market shares.
b. This force is medium level, because the market is quite concentrated but consumers are quite loyal.
c. Existing rivalry is strong because the market is quite concentrated, switching costs are relatively low and the different firms' services are not especially differentiated.
d. Rivalry is strong because suppliers and not concentrated and entry barriers are low.
2. How would you evaluate the threat of buyers in this market?
a. It is relatively weak, because OCADO sells for final consumers who are not concentrated and have a weak bargaining power.
b. It is strong, because Tesco and Amazon are large firms with larger market shares than Ocado.
c. It is medium level, because OCADO cannot easily switch across its buyers.…
Choose an industry or sector which is becoming more and more competitive among FMCG retail OR Fashion. Assess their business strategies in terms of the generic strategies of cost leadership, differentiation and focus they are maintaining? How might the principles of hyper- competitive strategies apply to these industries or sector? Explain how, when and in what ways, interactive and cooperative strategies, rather than direct competition, might make sense to them.
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Whole Foods competes successfully with giant chains such as Wal-Mart and Kroger not on price but by emphasizing superior customer service, higher- quality products, a more extensive inventory of local and organic products, and a commitment to fair-trade suppliers. Its stores are well organized, attractive and entertaining. The keys to success such as superior customer service, higher- quality products, etc. that Whole Foods has built the company's strategy on are known as strengths key success factors core competencies O business strategiesarrow_forwardHow is success measured when a firm pursues a focus strategy? Only industry-wide competitors can create similar value for the market segment. Broad-based competitors choose not to serve that same segment of the market. It is possible for the firm to pursue low cost and differentiation simultaneously. Firms are willing to link with suppliers and distributors to manage costs.arrow_forwardWhat are the competitive advantages when selling online. Please answer the question. Thank you.arrow_forward
- 5. Direct-to-consumer businesses have had mixed success. That is, while the model has succeeded in some categories, it has not worked in others. Can you identify reasons why? Which product categories may be more suited for direct-to-consumer business model?arrow_forwardExplore Alibaba.com and check out some product examples to get a feel for what you could find there. When comparing making a purchase on Alibaba.com to making the same purchase on Amazon.com, what are some of the logistical considerations that differ?arrow_forwardSpend some time browsing Alibaba.com and taking a look at some examples of the products that are offered for sale. What are some of the logistical factors that are different between buying anything from Amazon.com vs Alibaba.com?arrow_forward
- How does the Internet and information technology influence Porter's five forces of competition and assist Save Mart Cash & Carry compete?arrow_forwardIf a traditional brick-and-mortar store decided to adopt FBA, how would it go about integrating its information systems with those of Amazon?arrow_forwardBusiness analysts say that physical retail stores are declining, while e-commerce websites such as Amazon are more popular than ever. Do you agree? Why or why not? What are the adverse effects, if any, of the rise of e-commerce websites vs. physical retail stores? What are the positives?arrow_forward
- With their different perspectives in mind, evaluate how and why their strategies differ. What recommendations would you make to brick-and-mortar stores to capitalize on how they can compete more effectively with online businesses?arrow_forwardBy trying to get customers to spend more time in the store and purchase additional products, grocerants use which strategic opportunity?arrow_forwardFor the company APE Eagers Automotive Limited Do a paragraph for competitive positioning This section should also provide a group of peers operating in the same industry for the purpose of competitive analysis. Some insights regarding company’s competitive positioning should be included in this section.arrow_forward
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