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In many countries alcohol has become a topic of discussion had to many abuses. This has led to a tightening of the law prohibiting advertising of alcoholic beverage in public and private places. Also inscribed "alcohol is dangerous for health" became compulsory on packs and bottles of alcohol. This has led to a widespread decline in consumption of alcohol and consequently the disappearance of small beer brands in favor of gross brands accept more a drop in the consumption but increase their rates to offset the decline. Also the pubs suffer greatly from this tightening and many are closing or offer alcohol at higher rates. However a new market emerges that of non-alcoholic beer which has a broad advertising coverage because it does not fit within the tightening of the law on alcohol. "Looking for new market segments may provide opportunities but product/service features may need to change" (Exploring corporate strategy 2009 p 82)
The liquor starts to have a bad reputation because too dangerous for the health and safety of drivers. This has resulted in a decrease in consumption of alcohol said fort. In addition a new marketing campaign is launched on the fact that beer contains less alcohol than the rest of alcoholic beverages and it is therefore better for your health. The consumer is more responsible prefer to drink beer in favor of strong liquor. This allows a resumption of the beer market with the emergence of new brands and types of beer that can make the market more competitive. This resulted in lower prices for consumers and create new alternatives "Organization face competition from industries that are producing substitutes" (Exploring Corporate Strategy 2009 p 81) and the resumption of sales in pubs. Also new niche segments may appear as the exclusive sale of beer on internet.
Campaigns against alcohol abuse.
Growing new markets.
Rising sales values.
New beers (Supermarket brands & Exotic beers).
Decreasing consumption in Europe.
Increasing consumption in the rest of the world.
Wine is getting more attractive.
Effects on Health and Fitness.
- law more hard for consummation of alcohol
Porter's 5 Forces:
Threat of entry: Medium.
Threat of substitute: High.
Power of buyers: Low.
Power of suppliers: Low.
Competitive rivalry: High.
New Growing Markets
New Brands in New Markets
Sales decrease in pubs
Sales fall because of dangerousness of alcohol
Law more hard for alcohol
Campaigns of alcohol are forbidden
Same message of smoke package
Johnson, Scholes and Whittington. (2008). '8th Edition. Exploring Corporate Strategy: Text and Cases'. FT Prentice Hall.
Strategic Management creating Competitive Advantages, Gregory G. Dess, GT (Tom) Lumpkin, Marilyn L. Taylor - 2004
Strategic management an introduction to business and corporate strategy
Paul N Finlay 2000
Learning Portfolio Assessment: Option 6
The differentiation strategy aims to make a unique product to consumers. "Policy produced by a company that will differentiate its product those of competitors by unique characteristics perceived by consumers" (Marketing Dictionary 2003 p349) The pioneer in the automotive sector was suggested that BMW cars aesthetically pleasing, robust and functional for a purchase price not excessive. Key factors sucess are the control of its upstream and downstream, a great effort of innovation, quality control and information flow internal and external performance.
The various differentiation strategies are established on market segmentation with the recovery of the product up is to say, a brand strategy on the price and quality, we may cite as an example that Audi offers a product Luxury. There is also the strategy of specialization that responds to specific requirements such as Jeep that substantive all-terrain vehicles or offering smart car city.
Then there is the differentiation from the bottom with the cleaning as a strategy that is to say, offer a lower price compared to competitors such as the Peugeot 206 car which offers a first prize. Finally there is the limitation strategy which aims to provide a basic product without super flux such as the Dacia brand Renault.
The advantages of differentiation are the protection against competition removes the threat of product substitution and therefore avoided a price war. However there are disadvantages such as customer segmentation had the money but also the risk of imitation and commoditization of the last products of differentiation. Â«The success of a strategy of differentiation must depend on how easily it can be imitated by competitors" (Exploring corporate strategy 2009 p 229)
Finally, for a product to be well differentiated must meet the following elements, which are that innovation is notable that the product is economically viable and finally it can persist in the long term.
The hybrid strategy in the automotive market is unavoidable. Indeed Many brands are made there. Such as moving the Citroen "C3" which is 1 in 3 cars at a very competitive or even the Toyota Prius, which combines ruggedness of a Toyota car and light in its handling (city car). Whatever the company if this strategy is successful then it will obviously be a considerable advantage over these competitors.
However this style of strategy can be achieved without a strong image of the brand and cost control in order not to sell below cost and to maximize their margins.