B2B
B2B
0606
Problem
“Trying to be all things to all customers almost guarantees a weak strategic position for a firm.” Agree or disagree? Explain.
Step-by-step solution
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Step 1/3
The different elements of core strategy and strategic resources help a firm to create a distinctive strategic position among customers and competitors in the market in which a firm competes. As part of core strategy, defining a business mission gives a firm a clear description of its objectives. It helps a firm learn how to differentiate itself from others by becoming proficient in a set of activities that benefit customers and provides superiority to a firm in terms of market position. As a part of strategic resources, core competencies define the skill set, values, and technologies possessed by a firm. These resources can be used by a firm to provide additional benefits to customers. A clear description of objectives and an overview of a firm’s ability (skills and technologies that a firm is capable of using) helps a firm to formulate a strategy capable of attaining a strong strategic positioning.
Step 2/3
Other than core strategy and strategic resources, following strategic positioning principles helps a firm achieve a strong strategic position by handling competition in a distinctive way. Making decisions related to one of the major principles of strategic positioning, i.e., a trade-off (Trade-offs are situations in which making one choice means forfeiting another) helps an organization to decide what not to do. Such decisions prevent a firm from potential losses that might occur as a result of serving all customer groups in the marketplace. For example, company RR an automobile manufacturing firm makes premium cars. Its (RR) focus is on high-net-worth individuals who value luxury. Such distinctiveness and inimitable focus help company RR in delivering a unique value proposition to its customers and achieving a strong strategic position. Whereas product development that caters to the transportation needs of every customer may not produce the same levels of profitability or customer satisfaction as focusing on a specific customer group.
Step 3/3
Therefore, it is true that “trying to be all things to all customers almost guarantees a weak strategic position for a firm.”