MKT 505 WEEK 9 DISCUSSION - 85587

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Discussion board 9-1. Competitive Advantages. Please respond to the following: 1. In your words, explain the concept of competitive advantage. 2. Choose a company. Suggest the best overall strategy that the company should use in order to measure its competitive advantage. 3. Discuss one indicator that helps to signal whether the company is either gaining or losing its competitive advantage. 4. Name a company that has gone out of business or is not doing well. Explain why the company failed or is failing Discussion board 9-2. Porter’s Five Forces Theory. Please respond to the following: 1. Research and analyze Porter’s Five Forces Model of industry competition. In your words, describe the usefulness of the model. 2. In your opinion, how are the various barriers to entry relevant to global marketing? 3. Choose a global company in a competitive industry. Discuss how Porter's Five Forces model applies to the company. 4. In your opinion, which of the forces is most important to the company? Explain why you chose that factor. NOTE: THREE DIFFERENT ANSWERS POSTED FOR THE PRICE OF ONE CHOOSE ONE
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DISCUSSION 1

 

1. In your words, explain the concept of competitive advantage.

Competitive advantage is when a company develops a strategy to outperform other companies thought products, pricing, promotions, and services. Companies want to have a competitive advantage to retain and cultivate customer loyalty with its embedded base.  On the other hand, a company wants to also focus on customer acquisition to grown its customer base. Competitive advantage gives more stability of a company especially long-term.

2. Choose a company. Suggest the best overall strategy that the company should use in order to measure its competitive advantage.

Company: Verizon Wireless

A company like this should definitely look at the following:

§  Market share

§  Product or service portfolio (4 P’s)

§  Net revenue

§  Profitability

§  Customer growth/retention

§  NPS – Net Promoter Scores

A company's long-term success is largely driven by its ability to maintain a competitive advantage - and keep it, even in the toughest, most volatile economic times. Many companies with competitive advantage are capable of creating value for shareholders.

3. Discuss one indicator that helps to signal whether the company is either gaining or losing its competitive advantage.

There are multiple internal and external factors that can disrupt a company’s competitive advantage such as short product life cycles, short product design cycles, new technologies, and globalization. Another factor affecting rivalry is lack of differentiation or an absence of switching costs, which encourages buyers to treat the products or services as commodities and shop for the best prices. The same way companies can measure their competitive advantage can be the same tool to see how much of a true competitive advantage they have such as analyzing the following:

§  Market share

§  Product or service portfolio (4 P’s)

§  Net revenue

§  Profitability

§  Customer growth/retention

§  NPS – Net Promoter Scores

Also, companies must have a competitive advantage focus in general…what is that key differentiator that their competition does not have but is a true quality. In this case “low cost or differentiation’.

 

4. Name a company that has gone out of business or is not doing well. Explain why the company failed or is failing.

Company: Circuit City

Occasionally the internal response to external challenges can weaken and organization infrastructure to the point of collapse. In research Circuit City failed in multiple ways that also resulted in a ripple effect.

§  Not recognizing the potential for growth in its core business after concentrating on its CarMax and Divx businesses.

§  Not adjusting to the market change during the recession- economic crisis which people stopped spending as much money

§  Firing thousands of the highest paid/senior employees – which shifted the company’s internal culture

RESOURCES:

Llovio, L. (2013, January 16). Former Circuit City CEO and chairman talks of company's demise . Retrieved  December 2, 2014, from Times Dispatch - Richmond Times - Dispatch: http://www.timesdispatch.com/business/former-circuit-city-ceo-and-chairman-talks-of-company-s/article_8e219f23-721b-5a54-b6c2-3e1b35536557.html

Keegan, W. J., & Green, M. C. (2013). Global Marketing (7th ed.). Upper Saddle River, NJ: Prentice Hall / Pearson.

OR

1.   In your words, explain the concept of competitive advantage.

Competitive advantages give a company an edge over its rivals and an ability to generate greater profits for the company and its shareholders. The more sufficient the competitive advantage, the more difficult it is for competitors to work against (neutralize) the advantage.

 

2.   Choose a company. Suggest the best overall strategy that the company should use in order to measure its competitive advantage.

 

 

http://money.usnews.com/money/blogs/flowchart/2010/08/19/10-great-companies-that-lost-their-edge

 

3.   Discuss one indicator that helps to signal whether the company is either gaining or losing its competitive advantage.

 

Globalization has created a market dynamic that give your support to new competition, demands extreme efficiency and requires true expertise in supply chain optimization.

For the first time, new competitors from regions around the world with flexible supply chains are effectively competing against established market leaders that have awesome brands, customer loyalty and deep resources. Many of these aggressive new competitors are government-backed companies with access to lower-cost capital — a real business advantage.

As global commerce equalizes the business landscape, speed becomes even more critical and supply chains become the ne

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