Essay on 750 words assignemnt

Submitted By zhenghoe92
Words: 851
Pages: 4

There are some strategies and model I have studied since starting at York St John University and these strategies enable me to know more about the strategy decision of an organization. Based on these strategies, the organization could sustain a competitive advantage to gain sale and reputation from the market. On the other hand, each of the organization or company might have its own strategies to create a competitive advantage. There are two examples of strategies to build a competitive advantage, price-based strategies and differentiation. Both of them have a same point which is gaining competitive advantage but the working way is not similar compare to each other. Price-based strategy is a method or a decision of an organization to compete with the market and it is rely on the cost of the product. This strategy does not relate to the competition and any external environment such as political and economic effects. The firm may have a deficit of profit if the price of products or services less than its cost. (Gregglee, 2014) Thus, organizational plays an important role in making a profitable price-based strategy for the product. Based on this strategy, organization could strike a competitive advantage in few ways. First of all, organization could create a lower structural cost. In order to make it, organization could reduce the price of production, for instance, they can set up a manufacturing factory which located in the area which have low labor cost. (Johnson, Scholes and Whittington, 2008) Take an organization as an example, Japan car manufacturer, Toyota, has set up a large manufacturing factory at Thailand. Some of the budget car is manufactured there with Toyota original parts that imported from Japan. This might help them in cost reduce and raise their production to meet the demand of the market. (Industryweek, 2014). Moreover, organization should focus on the group of population on low expectation. This kind of population is price-oriented segment in the market. They might not have high expectation on the brand and reputation of certain products. Organization should take an opportunity to target this kind of people by produce or create a product on their own with economic scale. (Johnson, Scholes and Whittington, 2008) Thus, this could avoid a large overhead cost and advertising cost of the branded products and these normally will found at some large hypermarket like Tesco, Morrisons, and Sainsburry’s. For example, in Tesco, they have their own grocer products like meat, frozen food, and some daily usage product. These products come out to target price-oriented customers. (Ukessays, 2014)
Apart from that, differentiation could make the company sustain in the competitive advantage as the organization could make itself differs from the other company do. By creating difficulties of imitation could push competitors far away from itself. (Johnson, Scholes and Whittington, 2008) Each company might have their own signature product or services that others company or organization might not copy easily. They could differentiate themselves based on internal and external affects by technology implement, quality, design, function, durability, service and more. (Dickson and Ginter, 1987) Normally, the group of people in this segmentation might have high expectation and looking for a good products or services. Indeed, the price of the products in this strategy might be higher than the other as the group of people is product-oriented. For instance, Apple doing well in differentiate theirs product. They have a barrier to for the other competitor to copy their product like I-Phone. They have their own operating system which the other smart phone could not acsess their…