GLOBAL COMPETITORS
Must be 600 words APA format
You talk with Mike and Tiffany at lunch. “You’ve done some great research and brought up some good ideas to implement in the presentation,” you say. “There is one element that we are missing.”
“One of the most important aspects of the strategy: our competitors,” Tiffany states.
“I’ve already done some analysis, and there are many in the global market. It seems like there are several office furniture companies thriving, but not as many custom furniture manufacturers,” Mike elaborates.
“Well, we need to provide the board with some solid competitors. I’ll work on finding our top two,” you say.
GLOBAL COMPETITORS
Complete the following:
- Who are your top 2 global competitors in the market?
- Provide strengths, weaknesses, opportunities, and threats (SWOT) analysis for each competitor.
- Why are they direct competitors?
- What is their competitive advantage?
- Could you form a cooperative strategy with any of the competitors?
- What strategies could you use to build a competitive market profile?
- What is balanced scorecard?
GLOBAL COMPETITORS
SOLUTION
Who are the two competitors in the competitive market?
According to Tiffany the two competitors are, The office furniture company of they are many in the market and the custom furniture companies which are less a Mike asserts.
Provide strengths, weaknesses, opportunities, and threats (SWOT) analysis for each competitor.
The strength for custom company is that they are less in number in the global market thus there is a big demand and consequently high profit margin .the office furniture is having less market share since there exists several thus serving as a weakness(Jackson, Joshi & Erhardt. 2003). The custom based company is presented with an opportunity of large share in the market and thus profitability. The office furniture company lacks the capacity to expand based on small share in the market cover as a result of several firms of similar make existing (Jackson, Joshi & Erhardt. 2003) The office furniture firm is threated more by competitors in the same market unlike company for the custom that faces less threat in basis of competition
Why are they direct competitors?
The two companies are direct competitors since they deal with furniture related items and thus close substitutes to each other.
What is their competitive advantage?
Competitive advantage is analyzed based on the cost of production of given product.it analyses if production of a given product is less in particular firm relative to the other hence we say the company with less cost is more competitive in terms of production(Barney, J. B. 2014). Custom furniture companies have more competitive advantage as opposed to the office furniture. Less number of custom related firms gives the company an upper hand in market penetration and profit maximization as compared to office Furniture Company that faces more competition (Barney, J. B. 2014).
Could you form a cooperative strategy with any of the competitors?
Based on the nature of market segmentation ,a strategy may be drawn by changing the product line for the office furniture form the competitive line to the production of custom furniture which is less competitive. This change will enable the company to maximize the gains from trade.
What strategies could you use to build a competitive market profile?
Lower price for the office furniture company. This move will shift the demand from high priced products in other company to the lower prices, this will increases the supply and in return the firm will make more profit (Smith, V. L. 1962). Offer after sell service that will act as an incentive, a strategy that both custom and office companies can adopt to attract the customers and consequently increase the market share.
What is balanced scorecard?
As a management tool, balanced scorecard is focused on overall goal of the organization .it is generally how much money a company makes .The two companies should lay strategies that focus on pricing policy which will give them competitive advantage over rest of related companies (Smith,V.1962). Should also improve on their products to differentiate them from common companies and also offer incentives to the customers to increase their shares. The above strategies will help in maximizing the profit for the two companies.
