The Product Differentiation Strategy Marketing Essay

The Product Differentiation Strategy Marketing Essay Excellent Shoes Manufacturing Pte Ltd has the options of using different strategies in their business; using appropriate examples, describe your understanding of these different strategies and suggest what strategy you might recommend the Company to use. In present day the economic is flexibility and the company that be able to survive in this field should know how to manage their own resource in the maximum efficiency and need to follow the market change and movement, the way to do this depends on the different technique and operating diversely on strategic management of the company. Especially, in the consumer markets which there is a high level of competitive. It is the essential that every single company should open up its market in new area, expanding further with modest ambitions or operating in additional differentiation products in markets annually. These factors are main causes to bring successfully to business which I believe that it depends on how the company maintain competitive advantage in business strategies? , What types of strategies are available in the business environment? Another important aspect is that the company can use flexibility standard strategies or develop its own strategy or not? In term of Excellent Shoes Manufacturing Pte Ltd, with the size of medium business, I feel that the company can use different of business strategies, according to its situation. For example, at the beginning, when the company was established, it may face different challenges than at the present. Moreover, the business strategies that it is implemented may be different from its competitor. In my point of view, I believe that there are four types of business strategies by following these: 1. Growth Strategy A growth strategy conduces introducing new products or adding new features to existing products. Sometimes, the company may be forced to modify or increase its product line to keep up with competitors. By using the new technology of a competitive company is a core concept to play on growth strategy. For example, the company is likely constantly adding new features or discovering new technology for shoes healthy design in order to save customerà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s feet while they are wearing. As a result, shoes companies that do not keep up with consumer preference would not stay in business long period. Moreover, the firm may also adopt a growth strategy by finding a new target customer group for its products. Sometimes, it can find new one for its products by chance. For example, as a result of the company is a specialises in the manufacturing and supply of high fashion leather shoes and the manufacturer may discover through marketing research that young teenagers in school like its products. Hence, in addition to selling fashion leather for students in order to distribute to retail stores or shoes shop in school, the company could design the shoes product in format of school styles. 2. Product Differentiation Strategy Most of companies will often use a product differentiation strategy when they have a competitive advantage, such as superior quality or service. For example, the shoes manufacturers may set themselves apart from competitors with their superior engineering design or manufacturing technology. Obviously, companies use a product differentiation strategy to set themselves apart from key competitors. However, I believe that a product differentiation strategy can also help a company build brand loyalty. It can see that today, the company is known in the local industry and it is amongst the top companies who can produce a high quality pair of sports shoes and ladies fashion leather shoes. 3. Price à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Skimming Strategy A price-skimming strategy involves charging high prices for a product, particularly during the introductory phase. The company will use a price-skimming strategy to quickly recover its production and advertising costs. However, there must be something special about the product for consumers to pay the excessive price. An example would be the introduction of a new technology. By doing this, it may be the first to introduce a new type of new sport shoes aerodynamic design or leather formal shoes modern styles. Because the company is the only one selling the product, customers that really want in trend by wearing new one and willing to pay the higher price. 4. Acquisition Strategy According to the size of company with extra capital may use an acquisition strategy to gain a competitive advantage. An acquisition strategy conduces purchasing another company. For example, the company may purchase a polyester factory or a leather factory in order to expand its operations and to control cost of shoes raw material. 5. Cost Leadership The benefit of formulation this business strategy is that the company will consciously choose to position its company as a provider of products or services at the low end of the pricing point compared to its competitors. Moreover, it could make up in volume what they may forfeit in terms of a high price point. On the other hand, Cost leadership is a business strategy that allows a company to become the lowest cost production company in an industry. Traditionally, businesses have two key options for improving profits by increasing sales or decreasing costs. By doing this, the company need focus more on acquiring raw materials that are the highest quality at the lowest price. Another important aspect is that the company must also use the best labour to transform raw materials into valuable consumer goods. Low-cost leadership usually translates into high-quality goods at low consumer prices. The capability to undercut a competitorsà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢ price often leads to increases in market share. In term of suggestion, what types of strategies should be formulated for Excellent Shoes Manufacturing Pte Ltd; I claim that the company could bring the result from the step of strategy analysis and to consider in these questions, what the external and internal environments that are confronting are? How the company can organizes and combines its resources in order to build its strengths, to eliminate its weaknesses and to sustain core competencies? How the company can achieve to find good opportunities for growing the business and to keep changing of posing a threat. From the consideration in those questions, I feel that I could recommend the company to use cost leadership strategy. As of the issue that Mr. Pattakorn is worried about the return of the investment in terms of profit is not as good as it was during his fatherà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s time. Conversely, the firm seems to have grown bigger with the manufacturing of many more pair of shoes. It is likely that the firm would have the problem from too high production cost. I believe that if the company can review and to control production cost, it will bring back the outstanding profitability. To sum up, sometimes, businesses would look for a combination strategy to please customers looking for multiple factors such as quality, style, convenience and price.