Title : Competitive Strategy

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ASSIGNMENT FOR INDEPENDENT STUDY – IV

Program : Executive MBA

Title : Competitive Strategy [ISBN 0-7432-6088-0; Free Press]

Author : Michael E. Porter

Answer all questions.

Q 1. The five competitive forces - barriers to entry, threat of substitution, bargaining power of buyers, bargaining power of suppliers and rivalry among current competitors - reflect the fact that competition in an industry goes well beyond the established players. In this context, analyze the competitive forces of any one of the following industries in India: courier industry, newspaper industry, two-wheeler industry.

Ans: Competitive forces of two wheeler industry in India:

Porter’s five forces outline in regard to the two wheeler industry in India outlines, new entrant threats, customers/buyers bargaining power, threat of substitute products, bargaining power held by suppliers and the level of rivalry among competitors. These five forces largely influence how the industry perfor

Q2.According to Michael E. Porter, there are three potentially successful generic strategic approaches to outperform competition. A firm can simultaneously pursue more than one approach successfully, or get ‘stuck in the middle’. Can cost leadership and differentiation strategies co-exist in a firm? Substantiate with examples.

Ans:

If a firm can achieve cost leadership and differentiation simultaneously, the benefits are great because differentiation leads to premium prices, and at the same time that cost leadership implies lower costs. An example of a firm that has achieved success in both a cost advantage and differentiation is McDonald. 

It is a concept developed by Michael Porter, this generic strategy here implies that the manufacturer in an industry produce products at the

Q3. a. Choose a company in any one of the following industries in India: direct-to-home television industry, organized retail industry. With respect to the chosen company, analyze the competitors’ response profile.

Ans:

Direct To Home:

In earlier days there was only one TV channel in India the “Doordarshan”, Channel Doordarshan was owned and operated by government of India. In this era, every home which had a TV set used to have its own antenna to capture the signals. The Cable Television Ordinance Law was passed in January 1995. This enabled cable operators to feed channels and later on private companies were allowed to air their own channels and this led to the explosive growth in number of TV channels and number of cable operators. The growth of TV channels & cable operators created a big industry and market opportunities. Until few years back

Qb. Discuss the competitive moves that can be adopted by the company (cited in 3a) to counter competitors’ attacks.

Ans:

The enabling regulations, in last one year are making the industry even more competitive. The industry stands a good chance to raise the quality bar. Digital revolution brewing, will benefit the users but also the government, by fastening the grip on number of subscribers which was open to manipulation in analogue telecast. Not just the broadcast industry, but the content providers are also put under scrutiny like never before in India. The forums like Indian Broadcasting Federation (IBF), Advertising Standards Council of India (

Q4. Being in the same industry, difference in performance of companies could be the result of their respective competitive strategies. In the context of the consumer electronics industry, analyze the strategic dimensions of any three leading companies which provide them strategic options.

Ans:

Competitive Strategy:

 A competitive strategy may be defined as a long-term plan of action that a company devises towards achieving a competitive advantage over its competitors after examining the strengths and weaknesses of the latter and comparing them to

Q5. Competitive strategies focus on how to improve your thinking, and get to be a step ahead of the competition in highly competitive businesses. On the other hand, the rapid advances of knowledge and technology mean that the relevant benchmark is perfection, not the competitor, in defining an ideal best practice. Do you think that the competitive dimension is often less important than the customer and user dimensions these days? Explain.

Ans:

Yes its a fact now that the competitive dimension is most of the times less important than the customer and user dimension.

Companies are recognizing the importance of delivering an experience that makes them stand out from their competition. Some are learning the hard way. Last year United Airlines had a brand crisis, in which $1.4 billion in value was wiped out overnight when a passenger’s experience went viral on social media. And, Juicero,  fell victim to brand crisis when it was discovered the proprietary juice packets needed for its $699 juicer weren’t so proprietary, resulting in the company dropping the price of the juicer to $200, and then ultimately going

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