Reference no: EM133532306

Case: Corner stores often have strategy right, don't they? With their limited resources, they have to rely on a laserlike focus on doing one thing very well. In a small but entrepreneurial South African neighbourhood, within a block of each other on the main street, two little shops have constantly ringing cash registers and a non-stop flow of satisfied customers. One is Willa's Pizza Palace. The space is cramped, completely unadorned, and noisy, with self-service paper plates and a limited selection of soft drinks. Customers can eat either standing up or sitting at one large, benchlike table. The staff isn't particularly rude, but they're non-committal. It is not unusual for your order, given at the cash register, to be greeted with a bland "Whatever." But, the pizza is to die for!! You could faint just describing the flavor of the sauce, and the crust puts you over the edge. Investment bankers, artists, and cops start lining up at eleven in the morning to see the "Slice of the Day" posted on the door, and around lunch and dinner, the line can run twenty deep. A fleet of delivery people work non-stop until closing. At Upper Crust, strategy is all about product. Then there's Elizma's Pharmacy, a very small but busy Pharmacy. The newly renovated, twenty-four-hour pharmacy is a short walk away from most of its regular customers. The Pharmacy, with its single, narrow aisle and shelves packed to the ceiling, is always busy. It's selection ranges from cold remedies to alarm clocks, with tweezers and pencil sharpeners in the mix. There is a personable pharmacist tucked away in back, and a wide selection of South African fashion magazines in a corner up front. Everything the store sells matches the mix of the neighborhood's quirky residents. Sales people greet customers by name when they walk in and happily give advice on everything from vitamins to foot massagers. The store offers instant home delivery and a house charge account that bills you once a month. At Elizma's Pharmacy, strategy is all about service.

Question: Looking at these two different businesses, critically answer the following questions • When you strip away all the noise, what is strategy about? (3) • Making clear-cut choices about how to compete is critical. How did each of these businesses choose to compete? (3) • Corner stores have learned that survival depends on finding a strategic position where no one can beat them. Elaborate. (2) • You cannot be everything to everybody, no matter the size of your business or how deep its pockets. Elaborate. (3) • Big companies have the same challenge. Elaborate.