Question

A) describes several distinctive strategies available to achieve a competitive advantage in the marketplace. Choose one of the four major strategies and describe some of the benefits associated with pursuing such a strategy.

B) the SWOT matrix it assists managers to develop four types of strategies. Despite its popularity it does contain some limitations that require careful consideration. List and discuss one of the limitations associated with SWOT matrix and analysis.

Answer 1

A. Distinctive strategies available to achieve a competitive advantage in the marketplace are:

The Cost Leadership Strategy

Porter's conventional strategies are ways of increasing upper hand – in other words, building up the "edge" that gets you the sale and takes it away from your competitors. There are two fundamental ways of accomplishing this inside a Cost Leadership strategy:

Increasing profits by decreasing costs, while charging industry-normal prices.

Increasing piece of the overall industry by charging lower prices, while still making a reasonable benefit on every sale because you've scaled down costs.

The Differentiation Strategy

Differentiation involves making your products or services not the same as and more appealing than those of your competitors. How you do this depends on the careful idea of your industry and of the products and services themselves, however, will ordinarily include features, usefulness, strength, support, and furthermore brand picture that your customers esteem.

The Focus Strategy

Companies that use Focus strategies focus on specific specialty markets and, by understanding the dynamics of that market and the one of a kind needs of customers inside it, grow particularly ease or well-specified products for the market. Because they serve customers in their market remarkably well, they will in general form strong brand steadfastness amongst their customers. This makes their specific market segment less alluring to competitors.

As with expansive market strategies, it is still essential to choose whether you will pursue Cost Leadership or Differentiation once you have selected a Focus strategy as your fundamental methodology: Focus is not typically enough all alone.

In any case, whether you use Cost Focus or Differentiation Focus, the way to making a success of a conventional Focus strategy is to ensure that you are including something extra as a result of serving just that market specialty. It's simply insufficient to focus on just one market segment because your association is too small to even think about serving a more extensive market (on the off chance that you do, you risk contending with better-resourced expansive market companies' offerings).

Few benefits of the Cost Leadership Strategy are:

Higher Profitability

One advantage accessible to minimal effort administrators in an industry is higher net revenues. If you can sell items and administrations with a lower cost premise and aggressive valuing, your edges are more prominent than organizations that contribute more to create results of comparable quality. Fundamentally, one choice for a minimal effort pioneer is to accomplish more profit from their items than rivals with higher costs.

Increased Market Share

An option in contrast to utilizing cost-leadership to procure higher benefits is to utilize it to build client request and market share. Organizations that can offer items at a lower-than-run of the mill market cost can, for the most part, actuate more business from frugal purchasers. They are as yet ready to produce industry-standard benefit on account of their minimal effort premise. After some time, a lower value point attracts more clients searching for a similar item, yet needing a superior arrangement than others in the market offer.

Sustainability

At the point when costs are lower for a business, at that point, there are less budgetary dangers that could make the association bankrupt. This sustainability turns into a colossal bit of leeway when monetary conditions get ugly. At the point when a cost or exchange war occurs, or there is a downturn in the neighborhood economy, it is the organizations with the most reduced cost of working together that will have the best shot at survival.

B. One of the limitations associated with the SWOT matrix and analysis are:

When you are leading a SWOT analysis, you should remember that it is just one phase of the business arranging process. For complex issues, you will, for the most part, need to direct more inside and out research and analysis to decide.

Remember that a SWOT analysis just covers issues that can be viewed as a quality, shortcoming, opportunity or danger. Along these lines, it's hard to address questionable or two-sided factors, for example, factors that could either be a quality or a shortcoming or both, with a SWOT analysis (for example you may have an unmistakable area, however, the rent might be costly).

A SWOT analysis might be limited since it:

• doesn't organize issues
• doesn't give arrangements or offer elective choices
• can create an excessive number of thoughts however not enable you to pick which one is ideal
• can create a great deal of data, however not every last bit of it is valuable.