Reference no: EM132127632
Suppose Baldwin company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing?
GLOBAL BROAD DIFFERENTIATOR To adopt a Global Broad Differentiator strategy, the company will maintain a presence in both segments of the market across all regions. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. R&D competency is developed to keep designs fresh and exciting. Products keep pace with the market, offering improved accuracy and speed – and sometimes tailored region kits. Prices are above average. Regional and product branding and sales efforts are given a larger budget to work with. Capacity is expanded as higher demand is generated, and Outsourcing is used to meet any additional demand.
LOCAL BROAD COST LEADER To adopt a Local Broad Cost Leader strategy, the company will maintain a presence in both segments of the market across only one or two regions. Competitive advantage is gained by keeping R&D, production, shipping and raw materials costs to a minimum, enabling the company to compete on the basis of price. Prices are below average. The Plant Automation level is increased to improve margins, and Outsourcing is used sparingly – only to meet excess demand. Any international selling must be done with an eye on margins, first and foremost. Vision Statement Low priced products for the local region: our brands offer solid value. Our primary stakeholders are bondholders, customers, stockholders and management.
GLOBAL NICHE COST LEADER To adopt a Global Niche Cost Leader strategy, the company will concentrate primarily on the Budget segment across all regions. Competitive advantage is gained by keeping R&D costs, production costs, and raw materials costs to a minimum, enabling the company to compete on the basis of price. Prices are below average. Regional and product branding and sales efforts are below average. Automation levels are increased to improve margins, and Outsourcing is only used to meet demand. Vision Statement Reliable products for low technology customers across the globe: our brands offer value. Our primary stakeholders are bondholders, stockholders, customers, and management.
GLOBAL NICHE DIFFERENTIATOR To adopt a Global Niche Differentiator strategy, the company will focus on the Performance Segment across all regions. Competitive advantage is gained by distinguishing products with excellent design, high awareness, easy accessibility, and new products – any of which may be tailored to the individual local market’s needs. R&D competency is developed to keep designs fresh and exciting. Products will keep pace with the market, offering improved accuracy and speed. Tailoring products with specific region kits is considered. Prices are above average. Regional and product branding and sales efforts are given a larger budget to work with. Capacity is expanded as higher demand is generated, and Outsourcing is used to meet any additional demand. Vision Statement Premium, tailored products for technology-oriented customers across the globe: our brands define the cutting edge. Our primary stakeholders are customers, stockholders, management, and employees.
Global Broad Differentiator
Local Broad Cost Leader
Global Niche Cost Leader
Global Niche Differentiator
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