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Top five best business strategies

 

1)   Amazon:
Cost leadership strategy

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Amazon’s overall
business strategy places a strong emphasis on accomplishing a leader role in
the e-commerce world and developed a cost leadership business strategy.1
Beginning in the online book industry, Amazon saw an opportunity early on in
the e-commerce world. Amazon noticed that there was a greater opportunity for
them to sell other things, besides books, on the Internet, and sell directly to
customers. They have become a top online competitor and still prove to be an
extreme competitor in e-commerce. 2 In
2017, Amazon verified their dominance through their cost leadership strategy.
Amazon obtained a competitive advantage by improving efficiency and decreasing
costs.3
Amazon is constantly improving technology to keep up with today’s retail
demands and investing heavily in Research and development to improve
performance.4
Through an indestructible technological front, heavy R&D, and determination
for low costs, Amazon has upheld their position as the top competitor to beat
with the best business strategy.

2)   Johnson
& Johnson: Differentiation focus strategy

Johnson &
Johnson developed a differentiation focus strategy because of the priority they
place on their customers first and foremost and create their products with the
customers’ best interest in mind. Their main focus is pharmaceuticals and
differentiates themselves within the pharmaceuticals market. Johnson &
Johnson has one of the best business strategies because they are constantly
instructing R efforts to improve the health care industry. With science
constantly evolving and many changes in the world, Johnson & Johnson
thoroughly look to improve and grow in their industry.5
Johnson & Johnson also always has their customers as their top priority
making them one of the companies with the best business strategy in 2017. All
companies care about their customers, but Johnson & Johnson goes above and
beyond to ensure their customers stay safe and healthy.6 

3)   Toyota
Motors: Cost leadership; differentiation strategy

Toyota Motors
bears a cost leadership business strategy because they are constantly trying to
discover new ways to be cost efficient and decrease costs for their customers.7
Toyota also fall within the differentiation strategy scope because they look
for ways to make their products stand out and differentiate themselves from
their competitors.8
Toyota has one of the best business strategies because they take
differentiation to the next level, while also creating competitive prices
through their Just-in-Time manufacturing method. Toyota also stands out because
in their new methods and new general world revolutions, they are looking for
what is environmentally friendly and how to better contribute to a safer and less
polluted world.

4)   Microsoft:
Differentiation strategy

Microsoft
implements a differentiation strategy in order to gain a competitive advantage
because the products introduced to the Microsoft storefront contains different
software, products, and designs that are focused primarily on the average
business organization.9
Microsoft also prides them on “product innovation.”10
In 2017, Microsoft planned to incorporate Cloud service and virtual reality-
virtual reality being their main concentration.11  Microsoft is pinning down what they believe
the future will consist of in terms of technology and perfecting those products
to develop more of a competitive advantage.12

5)   AT:
Cost focus strategy

AT has not
been a leader in the telecommunications sector, but they did not let that
discourage them. AT developed a cost focus strategy because they are
trying to be cost leaders, but are still trying to find cost advantages
wherever they can. 13In
order to do so, AT needs to increase their sales and become a front-runner.
They have one of the best strategies because they are now attempting to expand
into other areas where they know they are lacking. Their biggest step is to
acquire Time Warner and break into the entertainment industry.  By merging with Time Warner, AT can
increase their revenues.14

 

Top five worst business strategies

1)   IBM:
cost leadership strategy

IBM maintains a
cost leadership strategy because their goal is to decrease prices to increase
sales. From this then they hope that there will be a spike in revenues and make
their products more appealing to customers.15
Though IBM strategically uses outsourcing and global expansion to their
advantage in reducing costs, IBM has not accomplished much besides reducing
product costs. They do not seem to be growing their product list besides
computer hardware and software.16
They are not taking strides that other information technology services take,
leaving them to fall behind and always be a step behind their competitors.

2)   Samsung:
Cost leadership strategy

Samsung has come
a long way in the past few years. They have increased their revenue due to
their Galaxy series and have reduced many of their costs as a result of their
cost leadership strategy.17
While they seem to be improving, they are still not market leaders or cost
leaders. Their strategy in 2017 is to improve their smartphone and improve
market leadership, but is not pursuing any future technological products such
as virtual reality.18
They are incorporating artificial intelligence into their smart phones, but
they are not nearly where they should be in today’s market. Their main strategy
is to continue with their smartphones and improve their touch pad, but their
strategy does not seem to push them further.

3)   Ford
Motors: Differentiation strategy

Ford Motors began
with a cost leadership strategy in that they wanted to reduce their costs to
make themselves more attractive. They’ve since strayed away from cost
efficiency and looked for ways to make their products different in the
automotive industry. 19
As new auto companies came into play, Ford realized the extreme competition and
looked for new ideas. Ford’s business strategy in 2017 was not the best
strategy because their main focus is redesign. Their redesign process would
also include improved technology, but they are not as focused on other factors
such as environment or pollution. While Toyota focuses on the negative effects
cars have in general and working on fixing them, Ford is coming up slowly
behind them trying to catch up.20
Improvements are included in their business strategy, but they are not the
leaders anymore. 

4)   Verizon:
Differentiation strategy

Verizon has many
products that differentiate themselves from competitors.21
Verizon has excellent quality and have expectations to expand their wireless
networks from 4G to 5G, being the first in the telecommunication services.  Since they are continuously trying to
differentiate themselves, their prices skyrocket incredibly as compared to
various competitors. To stay differentiated, Verizon needs to consistently
incorporate and improve them to stay a step ahead. This affects their prices
making it unattractive to some customers.22
Verizon’s business strategy reinforces their reliability, but does not help
prices that customers are ultimately going to have to pay, which should be one
of the main priorities for a service company.   

5)   Coca-Cola:
Differentiation focus strategy

Coca-Cola is a
brand that has been around for a long time and is a name that customers grew to
love and trust. They have a strong marketing campaign and loyal customers, but
their 2017 business strategy does not include current world problems such as
the effects of sugar or the correlation between soda and obesity.23 Coca-Cola
does not have that strong of a strong focus on these important current issues,
which will ultimately have an affect on their total revenues and profit
margins.

 

            The
companies on the top 5 best business strategies made the list because their
business strategies incorporated a desire for growth, an aptitude for expansion
and new ideas, and the capacity to have their customers as their number one
priority. Companies like Amazon and Toyota have developed strategies that
differentiate themselves from others because they differentiate their markets
and they look towards the future and see what they could do to better the
future. These priorities have built these companies up into big companies that
are difficult to compete with.

 

            The
companies on the top 5 worst business strategies were on this list because these
companies were either too behind in this rapidly moving technology era, did not
differentiate their product enough, or was focused on one strategy but did not
take into consideration the changing time. When a company’s business strategy
lacks diversity or seems to be moving in a linear slope, the company will
decrease in value and will struggle to grow. 

 

 

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