Policy and Strategy Sample Essay on A competitive Strategy

 Assignment

Question 1

A competitive strategy is an organised scheme formulated by a company management to compete favourably and develop a competitive advantage over rivals in the market. Competitive strategies usually aim to influence customers prefer a firm to others in acquiring goods or services. Unlike other company strategies, competitive strategies are more focussed on attracting the attention of the customers and making them perceive that the products of certain company are better than others. Other company strategies are focussed on production, human resource and other things that rarely touch or affect the customer. Also, competitive strategies tend to be more dynamic than other company strategies. A competitive strategy that will attract a customer now may not be effective next time. This dynamicity is caused by the competitive nature of the market. Companies are always changing their competitive strategies in order to outdo each other in attracting customers.

Question 2

Best-cost strategies are a combination of low-cost and differentiation strategies that meet customer expectation on a particular attribute of product but exceeds their price expectation. The advantage of best-cost strategies is their suitability in markets where differentiation is common and customers that know the value of the products they want. Such kinds of customers are met with products that match their needs but are beyond there are expectations in terms of price. However, best-cost strategies can be disadvantageous for a company that lacks the necessary resources to manage differentiation and provide alternatives. The resources required for best-cost strategies may increase the running costs of a company. Toyota is a notable company that uses best-cost strategies to produce and market its Lexus brand. The method has been effective in making Toyota compete favourably in the market.