Introduction
The dynamism and complexity of doing business in the 21st century requires business entities to adopt more competitive strategies in order to obtain a share of the market. Firms operating in various industries are forced into adopting a series of strategies to counter the actions of their rivals, failure to which they can run out of business (Grant, 2013). This report intends to analyze and understand the competitive strategies that have been adopted by Apple, Nestle and Toyota- three companies operating in three different industries.
Apple is a company in the tech industry that develops a range of electronic gadgets. These include i-Phones, smart phones, tablets, i-Pads, and Macs. Apple’s competitive strategy involves incorporating multiple features associated with the company into all of their products. Instead of taking a ‘head–on’ confrontational competitive strategy against their rivals, they concentrate on the making their products competitive amongst themselves. This strategy has been effective in boosting the sales of the company. Instead of concentrating on how to beat their competitors in products which they have a competitive edge over, they work on developing the products that do not sell well. This is done by adding more features to the products. As a result, this strategy of integrating multiple products as one is giving the company market dominance over rival companies such as Samsung and blackberry.
Nestlé’s Competitive Strategy
This is a company that produces food products to their customers. The company intends to achieve recognition as a leading player in the provision of nutrition, health and wellness. The company has adopted a people-centered approach to marketing that recognizes the importance of understanding the values, culture and attitude of the people. Another competitive strategy involves diversifying its markets by tapping into wide geographical areas. The company has a research and development capability that its rivals find difficult to match. This enables it to develop and improve on their products in a continuous and regular basis. Most importantly however, the company commands a product and brand portfolio that is unique, distinct and reputable. This has led to a strong brand loyalty by their customers over the years. Moving forward, the company should ensure that it continues to tap into emerging markets in order to attain its set objectives.
Toyota’s Competitive Strategy
This is a company that operates in the auto mobile industry. This industry is characterized by customers with different taste and preferences. This makes it important to develop products that satisfy the unique requirements of the market. Therefore the market strategy of the company entails that their products are differentiated and stand out from the rest. They also aim at reducing their cost of production in order to expand their customer base. By ensuring product differentiation, the company is able to meet the needs of customers with varying tastes and preferences. Low cost of production ensures that the company’s products remain affordable to most customers. Customers that want more classy and sophisticated brands are catered for under a separate niche of the market.
Conclusion
Firms in different industries face unique challenges in satisfying the wants and meeting the needs of their customers. Acquiring competitive advantage in the industry is central in expanding market share. Regardless of the industry in which firms operate in, it is important for them to realize that the overall competitive strategy of any firm will greatly be influenced by the threat of entry by new firms, threat of substitute products, bargaining power of buyers, bargaining power of suppliers and competitive rivalry within an industry ( Porter, 2004).
Works Cited
Grant, Robert M. Competitive Strategy. London: Henry Stewart Talks, 2013. Print.
Porter, Michael E. Competitive Strategy. New York: Free, 2004. Print.
