Tag: competitive strategies

  • How to develop a Competitive leader for the future?

    How to develop a Competitive leader for the future?

    It is a key task for every manager to develop the company’s next-generation competitive leader.

    According to experts, a self-planted tree gives more plants and fruits than a purchased one. Similarly, a homegrown leader is much better than a hired one.

    As a result, experts recommend finding the employees with high potential and put them through a strict program, multi-tasking, stretching assignments, and management classes, etc.

    The goal for this is to elevate the employee’s single function to multi-tasking, meanwhile, to broader their vision.

    Firstly, choosing potential candidates for a leadership program is the basic step, and for this one must judge the employees, their way of doing work, the potential to do work, the pace of doing work, thinking ability, and mainly the leadership qualities.

    Most Importantly, a candidate should be trained properly, also below are discussed some program to enhance the capability of the candidate.

    WHAT’S IN IT 

    Rotate candidate through different jobs

    competitive leader

    You must provide participants with firsthand expertise in numerous projects and functions inside your corporation. By doing so they will get contact with distinct branches and acquire new experience in just about every area.

    Challenging candidates with unfamiliar jobs

    For instance, stretching the assignments, these are growth-oriented exercises with some inherent risk that are designed to push participants past skills and to gain and achieve new heights for their skill.

    Even on failure, offer a valuable lesson to candidates so that they can add new skills, increase their learning ability, solidify the employee commitment and improve their confidence.

    Creating mentoring programs for candidates

    Step-by-Step: How to Design an Effective Mentorship Program (Part 2) - HR  Daily Advisor

    Naturally, we all follow a pattern, that is paring employees with senior employees, who have much experience and knowledge at their company.

    There should be partners meet for the first time, they should understand the mechanics of their relationship and decide how they will communicate. when will they meet when to meet outside meetings, etc.

    Partners need to have acquainted with each other before handling a particular problem, and spending some time with each other

    Talking work fashions, backgrounds and personalities build up confidence which pays in the future.

    Learning growth

    Other than giving a suitable program and coaching future leaders must be able to analyze the growth. One should be able to decide on one, and go if required for instant growth.

    Ensure participants get frequent coaching and feedback

    Candidate’s experience should be increased not stopped, so we want them to stretch but not break. Hence so we should make sure they have proper support for new assignments.

    Frequent evaluations help to catch and address problems and also the candidate and these problems can be solved as early as possible.

    Skill Transfer

    Why Are Transferable Skills Important? | JobMonkey.com

    This might be odd to read but it’s a fact. Let us go with this through a basic example we all know that in ancient times the medicine was Ayurveda, and it has all remedies. But, during development, we left them behind and we lost the natural medicine Ayurveda, as a result, it has to start from the beginning. So to avoid this we should have a skill transfer program, where experts, old retired workers, senior leaders should share the platform with new generation leaders to enhance their skillset.

    Consider everyone’s advice

    We do hear sometimes that old is gold. Hence, Don’t let old workers’ knowledge get wasted when they are retired from the job.

    For instance, set up the mentoring programs between old skilled and experienced workers and high-potential future leaders.

    Allow candidates to back off

    Every tree cannot bring fruits, similarly, every candidate selected to be a leader cannot be a leader. Not every candidate will have what it all takes to be a good leader. Meanwhile, restart the program if required, Selection should not stop at any process.

    Every participant may not have to start from the basic every time and have senior members of the program to help new candidates.

    Giving them Roles

    Nine Ways to Contribute to Project Team Success

    Giving them roles which can affect the whole organization or which affects a group of people is a good choice, a future leader needs to have solidity and confidence in the decision that is taken.

    Rewarding Candidates

    Rewarding is a very well known method to extract the best from someone, Other than money, Rewards can include standing out in front of staff for their appreciable decision, promoting them or giving a new hall of fame for their excellent work, etc.

    Conclusion

    As a result, A future leader should have different qualities like flexible with the job, deciding on one go. For the benefit of the employees and company and all these a trainee must go under rigorous training to develop a skillset and challenge accepting behaviour.

    Also you can Read our Blog on Role Of Brikshaw four-dimensional model

    FAQ’s

  • What are the competitive strategies? Complete Guide

    What are the competitive strategies? Complete Guide

    Competitive Strategies are a part of marketing strategies, where companies make strategies to make a company grow, make their brand grow stronger and make a significant number of the customer base. Competitive strategies can also be coined as SWOT analysis as SWOT is used as a strategy for challenges which a company has to face in the long run and stand out from the crowd. 

    What’s in it For Me?

    1. What are the competitive strategies?
    2. Challenging For Market Leaders 
    3. Competitive Strategies
    4.  Example of competitive Marketing Strategies  
    5. Advantages of Competitive marketing strategies
    6. Strategies for High Market-Share Companies
    7. Risk Reduction

    1. What is competitive strategy?

    A competitive strategy is defined as a long-term plan of any organization for challenging competitive marketing over its other organization after examining the strengths and weaknesses of the market.

    The strategy can challenge competitive pressures; different market positions can suggest different market strategies. attract customers and assist in cementing the company’s market position.

    Suppose a market is occupied by the share show 50 % is in the hands of a market leader; another 30 % belongs to a market challenger, and 20 % belongs to the market follower.

    A market leader has the largest market share in market distribution coverage. Some historical market leaders are Microsoft (computer software), Best Buy (retail electronics), McDonald’s(fast food), and Visa (credit cards).

    50% MARKET LEADER
    30% MARKET CHALLENGER
    20% MARKET FOLLOWER

    2. CHALLENGING FOR MARKET LEADER

    DEFENSIVE MARKETING:-

    A defensive strategy aims to reduce the attack of market shares, every interval of time a new item is launched of three to six brands so the market leader must have ready to defend their share of the market.

    The defensive strategies can be described as a set of actions being used by the market leader of the organization to protect its market share from its competitors.

    Competative Strategy
    Competative Strategy

    Defensive marketing is depending on the quality of the items where they are applied. if the public purchased products for their quality such as cosmetics, medicine, clothes, etc. then the existing customer will be your customer.

    For example:-

    Dabur chyawanprash

    The quality of Dabur chyawanprash remains constant, so this is the reason behind chyawanprash that it holds a market share in the market.

    3. Types of COMPETITIVE STRATEGIES

    Cost Leadership Strategy

    Cost leadership is a challenging task for an organization to implement because it takes a long-term dedication to sell products at an affordable price.

    The challenge is that the organization also has to produce these products at an affordable cost; otherwise, you will lose your profit margin. A large organization that can make their products at low cost and sells them at a concession while still making a profit can drive competitors by consistently sell the products at the lowest cost.

    Differentiation Strategy

    Identifying an attribute that makes your product or service unique is the driving factor in a differentiation strategy.

    If your organization can differentiate its products or services in the minds of the customer, it can hold the market share of the market and higher sales volume in the market, which your organization offers, but your competitors do not.

    Cost Focus Strategy

    A cost focus strategy is same as a cost leadership strategy, but the major difference is that in a cost focus strategy your organization pic out a very specific part of the market and discount that market the affordable prices, available in the market.

    For example, a company that sells mobile phones could target a country that has a high percentage of people where the people want to buy mobile at affordable prices and sell those mobile phones at affordable cost than its competitors, but your competitors do not. The fact that this part of the market is much more likely to buy by a customer.

    Differentiation Focus Strategy

    Like the cost focus strategy, the differentiation focus strategy targets a very specific part of a market, but rather than offering at affordable prices to the customer in the market, an organization offers unique products that competitors do not offer.

    4. EXAMPLE OF COMPETITIVE MARKETING STRATEGIES

    Case Study of MI Smartphone

    MI NOTE 8

    MI company is the manufacturer and marketer of smartphone and consumer electronic products, including mi band, mi trolly, mi smartwatch, and music players.

    The company has achieved a perceptible position in the industry through its competitive strategy, which is at affordable and premium pricing policy. MI has a consistent practice of developing new products and its ability to make a product.

    The company also sets premium prices for its products. The company has intention is to offer a good quality product with features and uses at low prices to the market of added value along with maintaining ing profitability.

    Case study of Motorola phone

    Case study of Motorola phone

    MOTOROLA smartphone company is the manufacturer and marketer of smartphone and consumer electronic products and music players.

    The company had achieved a percentile position in the industry, but it can’t compete in the market for a long time because the Motorola smartphone company strategy is not a pricing policy.

    It did not seem consistent practice of developing new products and its ability to make a product.

    The company had no intention to offer a good quality product with features and uses at low prices to the market.

    5. Advantages of Competitive Marketing strategies

    Before a competitive advantage can be established, it is important to know the:

    1.  Useful:

    A company must know what its product or service provides. And what they can affect in the market It must offer real cost and cause interest.

    2.  Market Aim:

    A company must set up who can purchase from their organization and how they can reach their target market.

    3.   Competitors:

    An organization needs to understand other competitors in the competitive market.

    6. Strategies for High Market-Share Companies

    Some companies examine the profit and risk associated with their market share may conclude that they had extended themselves in the market or certain sub-markets. Their large share puts them on the top too often or includes too many marginal customers.

    These circumstances can lead the company to think about how to reduce its presence in the market.

    Share relaxation for the application of general or selective demarketing principles, such as reducing product quality or convenience features.

    In a period of shortages in the market, these steps may be especially necessary. Several high market-share companies have slightly used demarketing too.

    7. RISK REDUCTION

    Companies concluding that their high share is dangerous may want to adopt strategies reducing the risk rather than strategies reducing the share.

    We have stated that the optimal market share is a function of both profitability and risk and that any success in reducing the risk surrounding a high share is tantamount to optimizing that share.

    Your defensive strategy can require tactics like brand position, improvement in brand features and affordable price, advertising strategies, and sales promotion campaigns. A combination of aggressive marketing tactics and actions will make your defensive.

    Frequently Asked Questions

    What competitive strategy does Walmart use and why?

    Walmart uses the “cost leadership strategy”.If we go back into the time the founder, Sam Walton’s primary motive was to make a high volume of profit by selling goods at a lower price than his competitors. 
    Do check out our blog on Walmart case study for more information

    What competitive strategy is used by Apple Inc.?

    Apple Inc. uses the competitive strategy of innovation and premium pricing policy. The constant development of new products with the most exceptional quality enhances their customer loyalty as well as sets the bar high for its competitors.
    A video on Master strategies of Apple

    What is Under Armour’s competitive strategy?

    Under Armour’s(Sportswear and Apparel) competitive strategy is of differentiation where they stand out among its top competitors, With its secret recipe of innovation.

    What competitive strategy does Amazon use?

    The core competitive strategy used by Amazon is the cost leadership strategy with which it established itself as the “Top global online Retailer”. 
    Check out our blog on Amazon case study

    What’s the difference between Competitive Strategies and Organization design?

    Competitive Strategies is a long term action plan linked to the comparison between both the company and its rivalry’s SWOT  & Organization design is basically the creation of roles and structure for better knowledge of the organization’s goal. Organization design and competitive strategies are both interdependent processes.