Business Strategy Essay Example | Topics and Well Written Essays - 3000 words - 2

Business Strategy - try out ExampleBest cost dodge combines strategic emphasis on low cost as well as rivet differentiation. It focuses on giving its customers more value for money. For E.g. Kingfisher Red Airlines is an example of take up cost airlines providing luxury of Kingfisher Airlines but at comparatively lower price than that of competitors in luxury segment. The convergence line of company employing best cost strategy has products with likable attributes and assorted upscale features. The aim of centre differentiation strategy is to secure a competitive advantage through offering customers of niche commercialize with a product that they perceive as vary well suited to their needs, tastes and preferences. The strategic target of rivet differentiation strategy is a narrow market in which needs and preferences of the buyers are distinctively different. Attributes appealing specificall(a)y towards niche members forms the basis of competitive advantage in focused differen tiation strategy. B. Explain in detail, IKEAs hybrid strategy? IKEA used a mix of low cost and differentiation strategies as a part of its hybrid strategy. They used innovative means for attracting customers and people who can become in that respect prospective customers in near future. The company tried to create differentiation in the retailing industriousness it operated in. It could be taken instance from the fact that the company allowed its customers to relax in its western style stores in a view that they could be aspiring customers of IKEA in near future. The production emphasis of products in focused differentiation strategy depends on customization meeting the tastes and requirements of targeted customers. The marketing emphasis of this strategy is towards communicating that how the product offers all the requirements in meeting buyers expectation in target market. Commitment in serving to niche markets correct than rivals remains the key of sustaining the strategy. C. W hy is IKEAs hybrid strategy is difficult for competitors to imitate? hybridizing strategy is difficult for imitate and lend IKEA to outsmart competition. This is because through hybrid strategy IKEA is created a mix of ii competitive strategies i.e. low cost and differentiation and the mix of these two strategies becomes difficult to imitate. D. Explain 3 seam risks that IKEA faces in its hybrid strategy? The three business risks related to hybrid strategy are These strategies could escape flexibility for IKEA in the scenario of changing external environment. These strategies could lack specificity in a long run for IKEA. Hybrid strategies help a company majorly when the organization has resources and capabilities of employing the strategy and serving an attractive niche market. Question 2 Provide the explanation with two examples in each of the 5 macro environmental influences that IKEA face from direct internationally? Macro-Economic Forces This includes forces at national an d regional level that affects the company. IKEA is retail chain build on a global platform where factors like inflation rates, bet rate and current exchange rates in bear some impact, but such impact cant be considered influential. As the interest rates are slashed as a result of recession in the economy, the company could soak up money at a cheaper interest rate. Same is the case with changes in current