Competitive Strategy E-Learning Activities

Competitive Strategy E-Learning Activities

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What is strategy?

            A strategy is a plan or method that an organization chooses in an attempt to establish the desired outcomes of the firm in the future. There are the various goals, tactics, objectives, and descriptions that an organization can adopt in their attempt to being effective in the industry or marketplace. The goals help in targeting a huge customer base in comparison to other players (Whittington, 2000). The goals or the tactics include being low cost providers in the industry, pursuing of global strategy by the organizations that help in targeting customers across the world, integration of a set of regional acquisitions, the companies can also have a tactic of providing unrivalled customer services across the world, always being the first movers and moving from defence to industrial applications. Strategy comes from a Greek word strategos that mean the art of general. Strategies demonstrate the strengths of an organization that can help in competing against other players in the industry. Viardot (2011) states that the executive of the modern organizations needs to develop strategies that lead to their victory.

From the video, a good strategy is the one that provides an answer to the following main four questions: where do we compete? Sadler (2003) argues that a good strategy should give direction on the areas that the company should compete in including the markets and the segment. What unique value do we bring to the market? The question helps in understanding why customers prefer purchasing from a certain market player. The unique values may include differentiation and low-cost strategies. What resources and capabilities do we use in delivering the value? Whittington (2000) records that an organization should evaluate the capital it has, technology and intangible resources including reputation in delivering value to the customers. Capabilities are the things that the company can be able to do or the potential to use the available resources in producing goods and services needed by the customers. How do we sustain the potential of providing the unique value? In sustaining the ability to provide the value, the organization may have various imitations, ability to exclude competitors in the provision of certain goods and services. The question helps in analyzing the factors that an organization to continue being competitive in the market taking into consideration other players in the same industry. IKEA is an example of clearly identified strategy that has been competing across the world

The company has been inexpensive in comparison to other players in the furniture industry, the skills possessed by the company employees is greater than the one held by the local operators, the company has been providing unique value to its customers through proper choice of the markets, low shipping cost for its products to the customers, the company also has technology that helps in mass production of products that help in reducing the cost of operation. Sadler (2003) postulates that different factors including skills of the employees play a key role in determining the position of a company in the industry in comparison to other market players.

Business model innovation

The business model of an organization determines the competitiveness and success of an organization. Business should focus on future even as they conduct their daily activities such as serving the customers. The success of today is the enemy of tomorrow’s success. Innovation increases the value of customers of a service or lower cost of operation and therefore creating competitive advantage. There are various misconceptions about innovation including views such as innovation results from ideas that nobody else has discovered them, big success requires big resources among others. Most successful organizations have innovated their business model. Business model enhances the success of an organization by answering some questions including who are the target customers, what the company offer, how the company creates value and means of generating revenue. There are 55 models that are responsible for the innovation of all business models. There are four steps that an organization can follow in developing its model and are initiation, ideation, integration and implementation.

Turning to the work of Abramson and Littman (2002) one finds that a company should carefully analyse its current model in developing new models. After initiation, the firm should confront the current model with the 55 business models pattern and develop the new pattern. The firm should then check the consistency of the model and then implement it. In development and implementation of the business model, there are various rules that the business should adhere to and include: only implement one business model at a time, clearly communicate the new business model and the need for change, make sure that the process takes the necessary time for it to be effective, get the new management commitment and overcome or avoid the not invented syndrome.  According to Kaplan (2012), innovation is the key factor that contributes to the success of an organization. In additional to technology and new ideas, innovation also includes learning from other people or organizations and re-inventing the model.

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            Nestle company is an Australian company that has been dealing with the various range of products. Research by Lee (2010) shows that the company operates in various countries in the world. The company operates by providing a range of products including food products and drinks. Some of the products that the company has been offering include breakfast cereals, water, chocolate, canned beans among other products. The company has been selling its products at relatively low prices in comparison to other players making it competitive across the globe. The company has also been educating its employees across all regions that it operates on how to deal with the clients with an aim of improving its position. Diversification strategy helps in maintaining the sustainability of an organization (Viardot, 2011). Nestle company has been diversifying through the production of products that is fit for different categories of people and therefore provides value effectively in the industry. The company has established a good reputation and has good technology that has enabled efficient production and delivery of the products to the outlets for easy access by the customers. Brand of the company has been helping the organization in providing value to its customers without great interference and has great imitation in the market. Because of proper services and quality goods, the company has continued being able to influence the customers towards their operations.

Business model innovation

            Volycom Company has been working to provide various products and services that facilitate telecommunication including phones and accessories. According to Abramson and Littman (2002), the company has been operating in a competitive environment where it faces competition from Techno Company and airtel. Trapp (2014) states that to remain competitive in the market, a company should consistently employ competitive advantage techniques that help in improving their competitiveness. Volycom Company has been inventing new ideas and technology that has helped in sustaining it in the market. The company has also improved on the innovation of business model. The business model of the company has helped in explaining to the customers and the general public the products and services that the company offer. Through the explanation of the products and services, the firm has been able to acquire more loyal customers and therefore improving the competitive edge of the firm. In addition, the model helps in explaining the target customers for its products and services, how the company creates value for the products and services it offers and how the company generates revenue.

Research by In Foss and In Saebi (2015) show that Volycom Company started by analyzing the current model in the attempt to develop a new model for the well-being of the company. The firm the employs the available 55 business mottos to develop a new model, check the consistency of the developed model and finally implementing. To remain competitive, the firm has actively been involved in innovating new ideas and model by learning from other companies operating in the same field. The company has been communicating its innovated idea to the members as well as to the intended clients


Abramson, M. A., & Littman, I. D. (2002). Innovation. Lanham, MD: Rowman & Littlefield.

In Foss, N. J., & In Saebi, T. (2015). Business model innovation: The organizational dimension.

Kaplan, S. (2012). Business model innovation factory: How to stay relevant when the world is changing. Hoboken, NJ: John Wiley & Sons.

Lee, G. (2010). Business process management of Japanese and Korean companies. New Jersey: World Scientific.

Sadler, P. (2003). Strategic management. Sterling, VA: Kogan Page.

Trapp, M. (2014). Realizing business model innovation: A strategic approach for business unit managers.

Viardot, E. (2011). The timeless principles of successful business strategy. New York: Springer.

Whittington, R. (2000). What is strategy, and does it matter? London: Routledge. (8:47) (8:22)

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