Competitive Strategy Arrangement of Resources

Question: Describe about the Competitive Strategy for Arrangement of Resources. Answer: Introduction Competitive strategy is defined as a long-term plan of a particular company that helps the company to increase competitive advantage over its rivals in the industry. The key objective of competitive strategy is to create a self-protective position in an industry as well as generate advanced Return-on-Investment (Jayawardhana and Weerawardena 2014). The company that will gain competitive strategy in this report is Fosters group. An Australian beer group was established in the year 1888 in Melbourne. The vision of the organization is stimulating global enjoyment. The premium product of Fosters group is to inspire enjoyment all over the world. The company also generates service excellence to customers and it also generates superior returns for stakeholders (Pettigrew et al. 2012). Paragraph 1 Key Ideas (Strategy) Strategy is defined as the direction as well as scope of an organization over the long-term. Strategy helps to accomplish advantage for an organization through arrangement of resources within a challenging environment. The key ideas that have been derived from the material are that most important strategy is unrivaled customer service. This type of strategy deals with superb customer service. Most of the organization faces the problem that deals with the fact that most customers are unable to remember the last time they received excellent customer service. An excellent customer service is not a rule however; it is an exception (Grant 2016). Another important key idea about strategy is globalization. Globalization has two prime characteristics that involve growing interdependency between the countries. It is comprehensive with numerous diverse business aspects. Another key idea about strategy is that it acts as a first-mover. In other words, it will prove beneficial for a business if they act as a first-mover that is if they are the first company to sell a new product. This will help the company to dominate the market and achieve higher-than-average profit (Sassen 2015). The advantage of first-mover strategy is that a company will be able to control a business that is necessary for a business. Another advantage of this strategy is that a first-mover enjoys switching costs of the purchasers. Switching costs involves adaptation of a new product. A low-cost pricing strategy is a policy in which a company offers a comparatively low price in order to encourage demand as well as increase market share. Low-cost strategy is also a part of generic marketing strategy. This strategy also helps the firm to win market share by attractive cost (Ferraro and Price 2013). Paragraph 2 Benefit of the organization (Fosters group) The organization that has gained from this strategy is Fosters group. The organization has gained first-mover advantage by the introduction of Carlton light with a low-cost price. The introduction of Carlton light was successful in maintaining steady sales over a period. This in turn, helped Fosters group to gain market. This helped the demographic segments of Australia to become more health conscious as Carlton light is a light beer that helped to maintain health. With the help of globalization strategy, Fosters group became more advanced in their products. It helped the company to produce their products at a rapid rate. Unrivaled customer service helped the company to maximize their customer service. Paragraph 1 Key Ideas (Business Model Innovation) Business Model Innovation does not mean that a company needs to generate something new. Rather, it means that a company needs to improve something old or existing. If the company does not execute that then, todays success will become enemy of tomorrows success. Business model innovation either increases customer value or lowers the cost of customers. This in turn, creates competitive advantage. With the help of innovation, the organization will be able to outperform its competitors that will lead to competitive advantage. Generally, when a company is able to deliver the similar benefits to its customers as its rivals but at a lower cost, then it leads to competitive advantage. The business innovation model that should be followed by a company should include initiation, ideation, integration and implementation. Initiation predicts the analysis of current business model whereas; ideation is the confrontation of development of new models. The consistency of business model is verified by integration and implementation is the execution of plan or a method (Massa and Tucci 2013). Paragraph 2 Benefit of the organization (Fosters group) The innovation of Fosters group on new product has improved the product portfolio of the company. This has also allowed an edge over other rivals in the industry. The company gained competitive advantage by launching new products that included Cascade Green as well as Carbon offset beer. The company also re-launched Carton premium day. Fosters Group has a wide portfolio of products that helped the company to gain profit. The innovation that has been performed by the company is mainly linked to the preferences of the customers. The innovation that was executed by the company was Carlton Light which is low in carbs as well as alcohol volume. However, it is rich in taste that mainly attracted the customers towards the product (Kastalli and Van Looy 2013). Conclusion It can be concluded that the organization that has gained from this strategy is Fosters group. The organization has gained first-mover advantage by the introduction of Carlton light with a low-cost price. Thus, first-mover advantage will help the company to dominate the market and achieve marginal profit. With the help of innovation, Fosters group will be able to outperform its competitors that will lead to competitive advantage. Carlton light is the innovation that has been performed by the company. It is a light beer that helped to maintain health of the individuals consuming it. References Ferraro, P.J. and Price, M.K., 2013. Using nonpecuniary strategies to influence behavior: evidence from a large-scale field experiment.Review of Economics and Statistics,95(1), pp.64-73. Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons. Jayawardhana, K. and Weerawardena, J., 2014. Conceptualizing the Role of Market Learning in Social Innovation-Based Competitive Strategy. Kastalli, I.V. and Van Looy, B., 2013. Servitization: Disentangling the impact of service business model innovation on manufacturing firm performance.Journal of Operations Management,31(4), pp.169-180. Khan, M.N.H. and Haseeb, S., 2015. Impact of Employee Motivation and Satisfaction on Customer Satisfaction and Organizational Performance: A Theoretical Framework.The International Journal of Business Management,3(1), p.129. Massa, L. and Tucci, C.L., 2013. Business model innovation.The Oxford Handbook of Innovafion Management, pp.420-441. Pettigrew, S., Roberts, M., Pescud, M., Chapman, K., Quester, P. and Miller, C., 2012. The extent and nature of alcohol advertising on Australian television.Drug and alcohol review,31(6), pp.797-802. Sassen, S., 2015.Losing control?: sovereignty in the age of globalization. Columbia University Press.