Business Strategy Formulation and Implementation
Business Strategy Formulation and Implementation
In the United States, there are more than 600 fast food restaurants and thus there is a strong rivalry in the market. Every day, a new entrant in the market tries to steal the revenue and existing customers of the already established business firms. This has forced many firms into coming up with competitive strategies to maintain or increase their market share and revenue. For Panera Bread, the main strategy that they have implemented is the product differentiation. The firm comprehends that the differentiation is a determining factor in the fast casual industry, and it provides a competitive advantage over the other firms.
The differentiation strategy that Panera Bread uses is a broad one. Through evaluations, Panera Bread understands that the American people are willing to purchase products that are unique. The products that are produced are fast foods. However, they are casual. Therefore, in order to gain a viable advantage, the products that they produce are healthier and appeal to many different types of customers. The products have a variety of tastes and flavors on their menu. These kinds of foods are produced in the quality that is not easily matched by the rivals of the firms. Additionally, Panera Bread offers fresh, high-quality bread. In their differentiation strategy, Panera Bread has also ensured that they create a comfortable environment for the customers to enjoy. The consumer service is of the highest quality and the provision of products in the higher prices than their qualities is testament to its loyal customer base.
Whole foods
Whole Foods business competitive strategy is a differentiation focus strategy. This does not depict that it does not however use other strategies that are used by its competitors in the market. In its differentiation focus strategy, Whole foods offer a broad differentiation of selected products that are of the highest quality levels in terms of the neutrality and organic products. This is a strategy that is based on perishable products. The product selections of whole foods include grocery, meat, produce, poultry, and bakery, catering services and specialty beers and cheese.
Apart from the product differentiation, whole foods have a customized layout to fit the specific site and building to show off specific products for their target customers in that area. Another strength within the Whole Foods corporation strategy is that they offer a monetary value added management and incentive system for personnel. This system worked well for the crew to use in finalizing choices that created maintainable shareholder value. In terms of the differentiation focus, Whole Food business organization the firm has decided to focus on the individuals who are willing to get the natural organic foods even though it is at a higher price.
South West Airlines
South West Airlines competitive business strategy is the differentiation focus strategy. This is because the model of this organization is to target the short haul passengers and the provision of travel rates that are as low as a third of their market competitors. This shows that the corporation is able to provide their services to a higher number of people at lower price. With the lowest operative cost structure in the internal airline industry, Southwest offers primarily short -haul high regularity, point-to-point, and the lowest and modest fares. The carrier serves 59 airports in 58 cities in 30 states. Additionally, Southwest also retains one of the best overall Customer Service proceedings. Southwest Airlines’ mission statement is “commitment to the utmost quality of customer service transported with a sense of warmth, outgoingness, individual pride, and business spirit”.
The main aims of Southwest’s business policy include focusing on transporting high numbers of customers on short trips with high frequency, offering low fares, making a strong pledge to its employees and clienteles, and aggressive promotion. Southwest Airlines’ second policy is to offer their clienteles low fares. Southwest remains to be the least expensive airline in its marketplace. Even when they attempted to match Southwest’s cut-rate fares, the large haulers could not do so without experiencing considerable losses. There are no accompaniments such as full meals, seating obligations, or baggage transfers. Southwest only deals snacks such as peanuts and drinks on its expeditions. The elimination of such frills decreases cost as well as airplanes non -productive turnaround time at gates. Southwest comprehended the possible of airline travel to be used by the common public and not as just a way of travel for the exclusive. From the start, Southwest’s operational policy profited from its considerate that in the airline industry clients’ choices were primarily driven by price. Southwest Airlines is in an exceptional situation since it is one of the chief driving forces in the current price competition. All is not well however. Current market circumstances and consumer preferences have made it problematic for airlines to price differentiate. The airline industry earlier relied on business travel for price discrimination but with the effortlessness of internet booking, nearly all customers have become price sensitive. The upsurge in price sensitivity has been compounded by the lack of product variation in the airline business.
