Cool Tech Tools For Education Market Differentiation - Page: 5. Modo Labs. As more and more colleges look to build mobile apps and mobile- enabled websites to tailor to the needs of a Millennial generation, Modo Labs provides a suite of solutions for campuses looking to make the transition. Built on the Kurogo Open Source Mobile Platform, Modo Labs can present any data on all types of devices. For example, Modo Labs helped California State University at Northridge develop and launch a mobile app that allowed students to change their class schedules, locate professors, gain access to course assignments and navigate their way around campus. CSUN said it plans to add more capabilities soon, such as dining menus, bill payments, social media, news and more. Differentiation is the process by which differences between learners are accommodated and is now a key skill for any teacher. Google Tools for Educators. Methods of Differentiation in the Classroom.Definition of market differentiation: A promotional method employed by a business to create an especially strong presence in a particular market. When using market differentiation, a manufacturer might produce several. Differentiation tools There are a lot of different differentiation tools that a company can use. These differentiation tools are used to distinguish. Sustainability and Wellness as Tools for Differentiation in the Market. Did you know that 80% of young professionals would like to work in a green job and that by 2038. Baron Lynx was released earlier this year to Baron broadcast customers, offering the ultimate tools for market differentiation, including dynamic graphics, social media integration, endless customization options. Porter's generic strategies - Wikipedia. Porter's generic strategies describe how a company pursues competitive advantage across its chosen market scope. There are three/four generic strategies, either lower cost, differentiated, or focus. A company chooses to pursue one of two types of competitive advantage, either via lower costs than its competition or by differentiating itself along dimensions valued by customers to command a higher price. A company also chooses one of two types of scope, either focus (offering its products to selected segments of the market) or industry- wide, offering its product across many market segments. The generic strategy reflects the choices made regarding both the type of competitive advantage and the scope. The concept was described by Michael Porter in 1. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources. Porter's generic strategies detail the interaction between cost minimization strategies, product differentiation strategies, and market focus strategies of porters. The breadth of its targeting refers to the competitive scope of the business. Porter defined two types of competitive advantage: lower cost or differentiation relative to its rivals. Achieving competitive advantage results from a firm's ability to cope with the five forces better than its rivals. The focus strategy has two variants, cost focus and differentiation focus. It is attempting to differentiate itself along these dimensions favorably relative to its competition. It seeks to minimize costs in areas that do not differentiate it, to remain cost competitive; or. If it is focusing on one or a few segments, it is following a focus strategy. Marketo's powerful marketing automation software helps marketers master the art & science of digital marketing to engage customers and prospects. Welcome to Prezi, the presentation software that uses motion, zoom, and spatial relationships to bring your ideas to life and make you a great presenter. Beat the competition, no matter what industry you're in, with Michael Porter's Generic Strategies. Includes tips on how to apply each strategy. View 3220 Market Differentiation posts, presentations, experts, and more. Get the professional knowledge you need on LinkedIn. A firm may be attempting to offer a lower cost in that scope (cost focus) or differentiate itself in that scope (differentiation focus). Companies that pursued the highest market share position to achieve cost advantages fit under Porter's cost leadership generic strategy, but the concept of choice regarding differentiation and focus represented a new perspective. The least profitable firms were those with moderate market share. This was sometimes referred to as the hole in the middle problem. Firms in the middle were less profitable because they did not have a viable generic strategy. Porter suggested combining multiple strategies is successful in only one case. Combining a market segmentation strategy with a product differentiation strategy was seen as an effective way of matching a firm. But combinations like cost leadership with product differentiation were seen as hard (but not impossible) to implement due to the potential for conflict between cost minimization and the additional cost of value- added differentiation. Since that time, empirical research has indicated companies pursuing both differentiation and low- cost strategies may be more successful than companies pursuing only one strategy. They claim that a low cost strategy is rarely able to provide a sustainable competitive advantage. In most cases firms end up in price wars. Instead, they claim a best cost strategy is preferred. This involves providing the best value for a relatively low price. Cost Leadership Strategy. This is achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return on investment, the firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve this. The first approach is achieving a high asset utilization. In service industries, this may mean for example a restaurant that turns tables around very quickly, or an airline that turns around flights very fast. In manufacturing, it will involve production of high volumes of output. These approaches mean fixed costs are spread over a larger number of units of the product or service, resulting in a lower unit cost, i. For industrial firms, mass production becomes both a strategy and an end in itself. Higher levels of output both require and result in high market share, and create an entry barrier to potential competitors, who may be unable to achieve the scale necessary to match the firms low costs and prices. The second dimension is achieving low direct and indirect operating costs. This is achieved by offering high volumes of standardized products, offering basic no- frills products and limiting customization and personalization of service. Production costs are kept low by using fewer components, using standard components, and limiting the number of models produced to ensure larger production runs. Overheads are kept low by paying low wages, locating premises in low rent areas, establishing a cost- conscious culture, etc. Maintaining this strategy requires a continuous search for cost reductions in all aspects of the business. This will include outsourcing, controlling production costs, increasing asset capacity utilization, and minimizing other costs including distribution, R& D and advertising. The associated distribution strategy is to obtain the most extensive distribution possible. Promotional strategy often involves trying to make a virtue out of low cost product features. The third dimension is control over the value chain encompassing all functional groups (finance, supply/procurement, marketing, inventory, information technology etc.) to ensure low costs. Wal- Mart is famous for squeezing its suppliers to ensure low prices for its goods. Other procurement advantages could come from preferential access to raw materials, or backward integration. Keep in mind that if you are in control of all functional groups this is suitable for cost leadership; if you are only in control of one functional group this is differentiation. For example Dell Computer initially achieved market share by keeping inventories low and only building computers to order via applying Differentiation strategies in supply/procurement chain. This will be clarified in other sections. Cost leadership strategies are only viable for large firms with the opportunity to enjoy economies of scale and large production volumes and big market share. Small businesses can be cost focus not cost leaders if they enjoy any advantages conducive to low costs. For example, a local restaurant in a low rent location can attract price- sensitive customers if it offers a limited menu, rapid table turnover and employs staff on minimum wage. Innovation of products or processes may also enable a startup or small company to offer a cheaper product or service where incumbents' costs and prices have become too high. An example is the success of low- cost budget airlines who despite having fewer planes than the major airlines, were able to achieve market share growth by offering cheap, no- frills services at prices much cheaper than those of the larger incumbents. At the beginning for low- cost budget airlines choose acting in cost focus strategies but later when the market grow, big airlines started to offer same low- cost attributes, cost focus became cost leadership! A reputation as a cost leader may also result in a reputation for low quality, which may make it difficult for a firm to rebrand itself or its products if it chooses to shift to a differentiation strategy in future. Differentiation Strategy. Examples of the successful use of a differentiation strategy are Hero, Asian Paints, HUL, Nike athletic shoes (image and brand mark), BMW Group Automobiles, Perstorp Bio. Products, Apple Computer (product's design), Mercedes- Benz automobiles. A differentiation strategy is appropriate where the target customer segment is not price- sensitive, the market is competitive or saturated, customers have very specific needs which are possibly under- served, and the firm has unique resources and capabilities which enable it to satisfy these needs in ways that are difficult to copy. These could include patents or other Intellectual Property (IP), unique technical expertise (e. Apple's design skills or Pixar's animation prowess), talented personnel (e. Successful differentiation is displayed when a company accomplishes either a premium price for the product or service, increased revenue per unit, or the consumers' loyalty to purchase the company's product or service (brand loyalty). Differentiation drives profitability when the added price of the product outweighs the added expense to acquire the product or service but is ineffective when its uniqueness is easily replicated by its competitors. This way, Chiquita was able to brand bananas, Starbucks could brand coffee, and Nike could brand sneakers. Fashion brands rely heavily on this form of image differentiation. Differentiation strategy is not suitable for small companies. It is more appropriate for big companies. To apply differentiation with attributes throughout predominant intensity in any one or several of the functional groups (finance, purchase, marketing, inventory etc.). For example GE uses finance function to make a difference. You may do so in isolation of other strategies or in conjunction with focus strategies (requires more initial investment). Case for Coca Cola and Royal Crown beverages is good sample for this. Variants on the Differentiation Strategy. The advantage is static, rather than dynamic, because the purchase is a one- time event. The unlimited resources model utilizes a large base of resources that allows an organization to outlast competitors by practicing a differentiation strategy. An organization with greater resources can manage risk and sustain profits more easily than one with fewer resources. This provides a short- term advantage only. If a firm lacks the capacity for continual innovation, it will not sustain its competitive position over time. Focus strategies.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2016
Categories |