How have you seen the core strategy demonstrated by companies and or to the benefit of customers?
Many companies have used core strategy to differentiate themselves from competitors through several ways that are beneficial to customers. One of them is through innovation and continuous improvements. The innovation and improvement capabilities of a firm mean that the customers can get new products that meet their changing needs as well as high-quality products.
Another way that core strategy has benefited customers is through value creation. In as much as the strategy is concerned, the major emphasis is on customer service and product improvement to make money spent by customers worthy. Core strategy has also benefited customers through the creation of intimate relationships. The strategy attempts to make the customers as part of the business rather than subjects and hence allow them to express their unique needs. In general, the core strategy benefits customers by changing the focus of the firm from profitability to customer service and satisfaction.
Discuss some ways in which core strategy has been exemplified in the literature
According to Hutt and Speh (2002), the core strategy is a way of choosing how to compete in the market. It is the way through which companies position themselves in the marketplace. The strategy helps people to recognize a particular firm in a particular way amid other competing firms. This means that the strategy serves as the means to increase the market share and create customer loyalty.
Core strategy does not only define the product or service offered by a firm but also explains their effort to create value. It is, therefore, a means through which the firm defines its unique selling preposition. Firms portray their capabilities and competencies to satisfy the market through their core strategies. Core strategy has been illustrated in the literature as the way through which the firm defines its mission for the business, what it can offer in the particular marketplace and the value its offering creates for the market (Hutt & Speh, 2002).
Take a position or examine a core strategy in use: Is it important, and in what ways have you seen it used positively or negatively?
The most prominent core strategy that has been used in the current competitive market is product leadership. The strategy has been used as the basis of the firms’ business models to integrate all other marketing and supportive strategies. This allows the firms to position themselves as firms that deliver value priced quality goods and services. Effective use of the product leadership strategy enables firms to develop their brands and realize economies of scale, especially on materials.
Therefore, their prices and margins become much lower than those of competitors. When many firms are spending a significant amount of money on promotion, product leadership strategy has enabled some firms such as Apple Inc. to spend much less as their products are self-selling (Sintumuang, 2012). They usually rely on cheaper methods of advertising, such as the word of mouth or their websites.
Moreover, the business model realized through product leadership makes the distribution system unique. The integration of e-commerce increases the convenience of ordering and distribution. Through customer loyalty created by the experience of superior products, customers can pre-shop and expect the delivery of the product in confidence. Therefore, product leadership as the core strategy provides the firm with a platform on which to tailor support and market strategies in a manner that creates value for customers at the lowest cost possible.
References
Hutt, M. D. & Speh, T. W. (2002). Business marketing management: B2B. Mason, OH: South-Western/ Thomson Learning.
Sintumuang, K. (2012, April 1). Is the iPhone the only camera you need? Wall Street Journal.