I don’t understand this Management question and need help to study.
We are the company D, and we chooses the Cost leadership strategy in the market. We have an analysis of other 4 companies(ABCE), I need you write a paragraph about how to deal with the competition between other companies?
“Strategy Master Sun Tzu said, Know yourself and your enemy, and in a hundred battles you will never be in danger. So in addition to figuring out our own strategy, we also looked carefully at what other companies might do. First, companies B and C, whose products are clearly aimed at the high end of the market. So their strategy can’t be cost driven. The quality and price of the cars produced by these two companies are generally higher, although their production capacity is lower than those of other companies, only 400 to 500.
If I were the decision maker of Company B, I would choose Niche strategy. Niche strategy has a very high-end product positioning.Because it’s highly customized, its target audience is very specific and singular. Because their three current models all cover the segment of high income. If I were the decision maker of Company B, I would choose Niche strategy. Because their three current models all cover the segment of high income. At present, they have the only sports models for sale in the market. In the market of luxury cars and family cars, because B is positioned at the high end, it only competes with C now. In the last round, Company B upgraded its vehicles, raised prices and spent more on publicity and marketing.Therefore, I think they would choose a niche strategy. The situation of Company C is similar to that of Company B, so it is very likely to choose niche strategy or differentiation strategy. The differentiation strategy is to provide consumers with unique products that are completely different from other competitors.
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Company A and Company E are similar to us, mainly targeting the middle and low end of the market.Therefore, cost driven strategy and differentiation strategy may be selected. Including us, these three companies are producing Economy, Family, Truck and Utility. And to gain an edge in these models, price must be a very important part.Company A has such an outstanding economic model, they will certainly improve the properties of the car at the same time with the price advantage. Company E has a very balanced car and is a strong competitor for us”
Requirements: 400 words
