Exploiting Competitive Advantages Using Business Strategy Essay

Exploiting Competitive Advantages Using Business Strategy - Essay Example â€Å"Companies with significant market share create a problem for competitors because these competitors will have to rely on "stealing" market share away from the competition; they can't just create a business out of thin air† (Teenanalyst, 2009). A strategy that the company uses to capitalize on its low-cost strategy is aggressively targeting customers through smart marketing campaigns. The use of marketing has helped the company get the word out about the good prices the company offers. On many occasions, the company offers outstanding value through special sales of products. The best evidence that the strategies used by the managerial staff of the organization are effective is the fact that Wal-Mart is the industry leader in the retail industry. The profitability of the company is further evidence of the dominance of the company. The net margin which is a financial metric that illustrates the absolute profitability of an organization is 4% (Walmartstores, 2012). A few year s ago I worked at a company that utilized the niche generic strategy to market its products. â€Å"A business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers† (Ward, 2012). ... Most people in this hobby lose several planes each year to crashes. The best proof that the niche strategy used by the company was effective was that during the beta test trials the product received outstanding reviews from the clients. Despite the fact that the company had a good niche strategy and an excellent product WRM failed as a business venture due to the fact that the ownership team did not have sufficient operating capital to move into the commercialization stage of the product. A company that is currently using the generic strategy of differentiation is the automobile maker BMW. BMW sells cars that are different than most cars in the marketplace due to the super quality, performance, suspension, design, and luxury. The differentiation strategy has helped this company build a great reputation and brand value Evidence that the strategy the company uses is effective is the fact that BMW charges a premium price for its products.