Deciding on a Competitive Approach and Scope
decision-making
Process: Deciding on a Competitive Approach - no less than 200 words •
Strategic
... [Show More] Thinking: Deciding on Competitive Scope - no less than 200 words •
Geographic Scope • Production / Distribution Scope • Decision Model: no less than 100 words • How do my decision models aid / hinder this, why • What decision models are being considered, why • Conclusion
Deciding on a Competitive Approach and Scope
Name
Institution
Instructions
Process: Deciding on a Competitive Approach - no less than 200 words •
Strategic Thinking: Deciding on Competitive Scope - no less than 200 words •
Geographic Scope • Production / Distribution Scope • Decision Model: no less than 100 words • How do my decision models aid / hinder this, why • What decision models are being considered, why • Conclusion
Introduction
As businesses focus on competing effectively and maintaining a competitive edge, the application of a competitive and effective approach in decision-making is fundamental. Deciding on the approach requires choosing and executing the right strategy. The process requires understanding the business environment, the competitors, the changing trends, uncertainties, and ensuring an effective competitive analysis. The development of a competitive approach targets to enhance competitiveness, profitability, market share, and ensure the achievement of sets goals and objectives.
Process: Deciding on a Competitive Approach
Deciding on a competitive approach is an essential process in designing and implementing a competitive corporate strategy. The process includes with an effective competitiveness analysis. The competitive business analysis process involves the identification of the competitors and the analysis of their competitiveness capacity in comparison to the business. The strategic thinking team must apply approaches that guarantee the consideration of the different factors that influence competitiveness such as the quality of products and services, pricing, marketing efficiency, the level of differentiation, and switching costs among others. Additionally, the process should include analyzing market factors that influence competitiveness in the market. Importantly, as pointed out by Gamble, Peteraf, and Thompson (2019), there is a need for identifying and analyzing the opportunities, alternatives, and deciding on the most effective approach for improving the capacity of the business regarding its competitiveness. The choice of the best approach should be made depending on the ability of the chosen approach to improve the capacity of the business to compete effectively and achieve its set goals and objectives. The consideration of the different competitiveness strategies such as the Cost-Leadership strategy, the differentiation strategy, the differentiation-focus strategy, and the cost-focus strategy is important before determining the approach. The most positively impactful approach should be chosen.
Strategic Thinking: Deciding on a Competitive Scope
As a part of strategic thinking, deciding on a competitive scope requires the application of Porter’s Five Forces and understanding the industry structure. The application of the Forces offers a deeper understanding of the market, the competition, and helps outline the areas that need attention. The forces define the competition rules in the market and, therefore, it is important to consider them in deciding a competitive scope. Managers/leaders direct focus towards the aspects the most define competitiveness. In deciding on a competitive scope, there is a need for understanding the determinants of rivalry, entry barriers, buyers’ bargaining power, and the determinants of the suppliers’ bargaining power. Importantly, there is a need of understanding the threat of new entrants to make informed decisions about the competitiveness scope. Understanding the industry structure and the five forces helps the team to develop applicable and effective approaches that result in the effectiveness of the competitiveness scope. For instance, the team can make effective decisions regarding the necessary strategies for shifting the competitive advantage to give the business an edge over competitors. Importantly, the competitive scope determine the target established by the entity, whether targeting a narrow or a broad industry segment. According to Porter, the competitive advantage involves the four types of competitive strategies, which cost leadership and cost focus are low cost but broad and narrow target respectively while differentiation and differentiation focus are broad and narrow target in that order (Krogerus & Tschäppeler, 2018; Rumelt, 2011; Gamble, Peteraf, and Thompson (2019).
Distribution Scope - Decision Model
The distribution decision model considers the impact of an effective distribution strategy on a company. The model involves evaluating the most effective of the channel structure, the multiple channels, the channel control, and the distribution scope. The process require the definition of the target consumers and the most appropriate and effective way of reaching them such as the application of either exclusive, selective or intensive distribution strategic approaches. The application of effective decision models in deciding on a distribution scope ensuring effective distribution strategy, therefore, facilitating efficiency in distribution. The distribution efficiency influence target customer decision-making thus improving the acceptability of the company’s products and services (Keller, 2012; Rumelt, 2011; Gamble, Peteraf, and Thompson, 2019).
Conclusion
The implementation of an effective competitive approach is crucial for facilitating the improvement of the competitiveness of a business, operational efficiency, and profitability among other business aspects that promote the capacity of the entity to achieve its long-term and short-term goals. Deciding on the competitive approach to implement is difficult and requires the consideration of different elements. Additionally, there is a need for considering the geographic scope, distribution, and applying decision models effectively.
References
Gamble, J., Peteraf, M., & Thompson, A. (2019). Essentials of strategic management. McGraw-Hill Higher Education (6th ed.), New York, NY.
Keller, T. (2012). Every good endeavor, Riverhead Books, Penguin Group, New York, NY.
Krogerus, M., & Tschäppeler, R. (2018). The decision book: 50 models for strategic thinking. W. Norton & Company, Inc. (Revised ed.), New York, NY.
Rumelt, R. (2011). Good strategy/bad strategy: the difference and why it matters. Crown Business, New York, NY.
Annotated Bibliography
Gamble, J., Peteraf, M., & Thompson, A. (2019). Essentials of strategic management. McGraw-Hill Higher Education (6th ed.), New York, NY.
Gamble, Peteraf and Thompson offer an extensive discussion of strategic management by focusing mainly on the element of competitiveness. The book explores the quest for competitive advantage and provides the essentials of strategic management. The concise, straight-to-the-point discussions are supported by case studies and examples that allow a deeper understanding of the topic. The authors are experienced professors and experts on strategic thinking, who show their expertise and mastery through their rich discussions. Published in 2019 by the McGraw-Hill Education, this 6th edition offers updated information, case studies, and well-researched and credible information. The renowned McGraw-Hill Education ensured a high-quality publication. The different topics discussed explore the topic effectively and make the book essential for studying strategic thinking, competitive approaches, and scope among other elements related to competitiveness and strategic thinking in business.
Krogerus, M., & Tschäppeler, R. (2018). The decision book: 50 models for strategic thinking. W. Norton & Company, Inc. (Revised ed.), New York, NY.
This book focuses on discussing strategic thinking and decision-making. Titled The Decision Book, it explores decision-making on the personal and corporate levels to help the reader understand and develop the capacity to make effective decisions. It integrates fifty models of strategic thinking use on MBA courses and in different sectors to help people become better at making decisions, assessing business ideas, and developing effective business presentations. The authors are experienced communication experts and writers, where Tschäppeler runs a successful communication agency while Krogerus writes for German and Swiss newspapers and magazines. Importantly, it was published by Profile Books, contains critical information on decision-making, and utilizes different models that increase the credibility of the information and the quality of the publication. Using the book in discussing strategic thinking and decision-making is fundamental for facilitating a deeper understanding of the topics and applying them efficiently.
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