Several types of information were used to study the customers. Some of them were the customer’s preferences and sensitivity in terms of the features they like and most need. The initial strategy for coming up with a competitive advantage was the pricing policy. However, the best strategy used was the production of several models, in that the low cost, eco-friendly, family and image. The company has maintained this strategy by improving on the models and using different market strategies to market. On the analysis of the team, several things have been done to effectiveness. The first one is the ability to relate and promote teamwork.
The highest investment strategy is the low cost which amounts to an index of four, followed by family, then image and lastly eco-friendly. Eco-friendly followed by low cost is expected to increase in growth. Family, on the other hand, is to decrease by a figure of -5.
Ways of achieving marketing strategies
A sustainable competitive advantage is said to be a group of factors that give an organization un upper hand in thriving in the business world. This advantage helps an organization of company to stand out from among the rest and attract more customers as opposed to their competitors. One of the sustainable competitive advantages that the company utilizes is differentiation. The models that were used were different from those of our competitors in the sense that there was more value added to them. Besides, the benefits associated with these models which in essence could not be obtained elsewhere. For every model of car that is chosen, customer preferences are put in place, for example, the family car had several benefits. Families usually want a car that is comfortable, nice looking and low in price. Though other companies may come up with these features, the mode introduces with a big size car that is able to accommodate several members of a family. These decisions came into place due to the fact that different customers want different models. Other than this elegance was put into consideration. Some people may not want a family car, but one that goes with their status; a classy car (Havaldar 2010).
Another approach that was used in achieving sustainable competitive advantage over the perceived competitors is the application of the low cost strategy. It is well perceived by all our team members that the low cost strategy does not entail the use of prizes that are cheap or being inexpensive, but application of a prize that is relevant to the value of the product. It became apparent that customers demand more value and products that meet their expectations for the money they spend. Therefore, there was a need to provide quality models that are up to standard and proven to have extra value than the rest of the competitors. The main aim was to ensure that value did not mean that clients could pay less for the product but give an implication that they will receive more for the money they spent. In using this strategy, models were produced and valued according to the features. Like in the image car, certain innovations are put in place that will satisfy the customer. One of them is the current GPS systems with up to date state of the art. Due to these many features, this car is priced much higher than the family car whose main features are comfort and size (Sharma 2013).
The approach of using a niche was also incorporated well with the other methods discussed above. The advantage associated with the niche approach is the focus and concentration on a particular market segment. This was achieved through focusing on the individual needs on a specific and small market segment. It was indicated that through meeting the demands and the needs of these small group of people, the company stands a chance of expanding rapidly in the future. This is because a small group or market segment can be reached easily and their need met than a large group. This will also help in increasing skills and strategies required for the company to grow more.
Choosing a specific market segment is very vital if one wants to achieve a competitive marketing advantage. Different people prefer different types of goods. The green company therefore, came up with low cost, family, eco-friendly and image cars. Currently people have become aware on the importance of conserving the environment through the reduction of pollution. Moreover, majority of people are going for cars that are eco-friendly. Due to such preferences, the green company has tried to combine the elegance, family needs, cost and eco-friendly all in one model. Such models give them an age over their competitors, since they have factored in the need of conservation which is important for some of the clients who value the environment (Wright 1999).
It was also noted that the use of a synergy strategy to obtain sustainable competitive advantage in the business world was appropriate. Synergy strategy is an approach of combining efforts, skills and assets of individuals and companies in order to produce the best product in the market. This combined effort makes companies to adventure into the business world and acquire more information necessary for their success. The businesses and organizations learn from one another’s downfalls and achievements as well as the possible future expectations in the marketing industry. The synergy strategy include the sharing of information on increased market credibility, sharing of customer databases, cross-selling, expanding one’s product, reducing operating cost and the likes. Consequently, in building these car models, the same approach was adapted as a group. Every individual contributed actively in ensuring that the models produced were exceptional and outstanding and that they became the best in the market (Smith et al 1999).
Combining low cost, family, image and eco-friendly also goes a long way in achieving a competitive advantage over other groups and companies. By carefully evaluating on the cost of production and other expenses incurred in making the four models, the above named strategies were employed so as to achieve a sustainable competitive advantage of these products. Providing all these models assists to meet the needs of all segments. Though sometimes they may not be combined, establishing the four models assists in meeting the needs of the different segments of clients (Balou 2009).
Nonetheless, it should be noted that in order to sustain a competitive advantage in the market, it is emphasized that products are positioned in a way that displays their value. This means that the value of a product can only be measured through the eye of the client. Therefore, quality of products is paramount and important than the prizes associated with them. It is indicated that value is directly proportional to quality of products. Hence, the amount of money that customers spend on products should also be directly proportional to the value that the product offers (Njuguna 2009).
Markets Targeted and the Reasons Why
Four markets were targeted by the company. The first market was the family. Members of a family usually have different needs in comparison to individuals who do not have a family. The needs of parents with children vary from those that that do not have, for example, individual with large families need a larger space. The reason as to why this target market was chosen is because the client size is large. Therefore, the car models that were built had to be sizeable enough to meet this expectation.
The second market targeted was that of the middle class. While targeting the middle class, low cost models were provided. Low cost in this case does not mean that they are cheap or easily affordable, but the models put in place are priced according to the features they contain. From the analysis it can be seen that the image model is priced at a higher price than the other models. Moreover, the family model is priced lower. This is because the image model is much more classy and elegant. Therefore, the low cost models were made in order to target the middle class people. It is also indicated that the population of middle class people is relatively higher than the rest of the classes. Consequently, the numbers of models that meet the expectations of this class were relatively high.
On the other hand, the image model which is relatively higher priced than the rest of the models was made to target the high class people. The reason as to why this target group was chosen is because they have also increased in number. Studies reveal that most people, especially those who are employed, want classy cars that will show their status in the society. A study done in America reveals that people are becoming more materialistic and they are esteemed in the society based on what they have (Friedman 2013).). Car models portray class; therefore, the image model is bought by most rich people. It can then be noted that, the main reason as to why this target market was chosen is because it is large (Michael n.d.).
The last group or class of people targeted was the Eco-friendly market group. This is a class of people whose main concern is the conservation of the environment. Therefore, they needed models that were environment friendly and could not impact on the environment negatively. Factors such as the type and amount of fuel to be used were highly considered in building models that could meet their needs. The reason why this class of people was targeted in the market is because their number is on the increase too (Michael n.d.).
Recommendations
During simulation, the prices that were used to advertise the four car models were relatively high. Consequently, the other competitors outlived us by selling more. We also did not invest well in the eco-friendly model and the low cost model which had the least percentage of sales that were made. This led to the piling up of stock. It is therefore advisable that the price of each model ought to be set carefully. Also, all products need to be balanced in terms of engineering and marketing while emphasizing on high quality and low price. The company is also urged to keep low inventories. It is also recommended that all marketing strategies for sustainable competitive advantage ought to be incorporated in making decisions concerning the company for its improvement in the future.
Conclusion
Having a competitive advantage over the other groups is vital if the company is to grow. Synergy, which is providing the four models, is by so far the best strategy in having a competitive advantage over other companies. Though the pricing strategy may do, using several models makes it easy to cover the entire market. The models help to meet the various groups in the society.
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