The automobile industry has had a turbulent ride in the past few years due toeconomic conditions. Fierce competition and globalization has made manufacturersstrive for their market shares. Customer’s expectations, product innovation,differentiation strategy and high levels of Research and Development have been themajor area of focus for the industry.
Bayerische Motoren Werke (BMW), which initially entered as an aircraftmanufacturing company in 1917, had to end its production after World War I in 1923due to the Versailles Armistice Treaty. BMW then made a shift to production of motorcycles in 1923. Finally, BMW started the production of cars in 1928 and todayis one of the biggest automobile manufacturers across the globe.
This case highlights the birth of BMW Group in the United Kingdom (UK) along withthe key issues faced by the company, its marketing strategies, core competencies,industry competition and brand positioning of BMW.Read More…
Airbus is one of the world’s leading manufacturers of commercial jetliners and military airlifters and is world’s first twin engine wide body jet since 1974. The key success factors of Airbus have been helpful in achieving the objectives and improve the overall performance of the company, financially and physically. The company strategy is based on differentiation strategy of Porters generic strategy while providing airplanes with innovative design and technology. However the key resources and capabilities have also been supporting the strategic decisions of Airbus in its design, technological innovations which would not have been possible, if not with the help of 52, 000 employees working with Airbus and its high end technology and support of customers and suppliers. The strategy is best suited to Airbus for the future directions as per Suitability, Feasibility and Acceptability (SFA).
Strategy is the direction and scope of an organization over the long term which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. An organization’s strategy is concerned with matching the external environment to the organizations internal environment in order to add value to its products and services and enable it to beat the competition (Partridge and Sinclair- Hunt, 2005:4). It is further stated that strategic management’s increasing importance is the result of several trends like increasing competition, modern and cheaper transportation, communication and technological development (http://media.wiley.com). Airbus is one of the world’s leading manufacturers of commercial jetliners and military airlifters and is world’s first twin engine wide body jet since 1974 (www.airbus.com). The organization has grown since its establishment on the basis on mission, vision and passion of its employees. The present papers present the strategy of Airbus identifying its critical success factors, resources and capabilities and assess the future competition for the organizations. Click here..
Easyjet was particularly successful because it identified a niche in the market for low price short haul flights that would suit leisure and business customers. It was based on the premise that airline flights were price elastic, if you reduce the price, more people would fly. This was certainly the case for the airline.
Easyjet made the choice in pursing a differentiation strategy. While, British Airways differentiated upwards during 1990’s – offering premium services (including lounges, best customer service, in-flight meals) which commanded premium prices. Easyjet differentiated downwards – taking out unnecessary services, just providing a basic A to B airline service with a smile, and thus offered flights at lower prices. Customers valued the lower prices, and the airline market expanded in the quantity of passengers as a result of this new product offering. Continue learning..
Michael Porter developed two generic competitive strategies for outperformingcorporations in a particular industry: lower cost and differentiation. Lower coststrategy is the ability of a company or business to design, produce and market acomparable product more efficiently than its competitors.Differentiation strategy is the ability of a company to provide unique and superiorvalue to the buyer in terms of product quality, special features, or after-sale service.(Wheelan & Hunger, 2008. Click here to read more…
This article presents an overview of the academic debate about mass customization (MC). The objective is to describe how the MC strategy was introduced in a Brazilian company and the results obtained, relating them to theoretical considerations. This is illustrated through a case study in an industry of the Brazilian household appliances sector. The context was the launch of a totally customized product, to be sold on the Internet to consumers with high purchasing power, with the strategic use of IT.
The aim was to create value for these customers by reinforcing the brand’s own values using a clear differentiation strategy. MC is already used alongside conventional strategies in a growing number of worldwide organizations, but in Brazil the use of this tool is still in its infancy, hence the importance of this study. Its qualities have transformed it into a valuable marketing device in the search for consumer loyalty. Click here to read more…