Company leadership
- What might industry forces cause a propitious niche to appear or disappear?
There things that a company needs to focus before thinking of making any progress. They first need to determine some of the better practices that will help advance the company operations. In this case, the propitious niche can help the company a lot. It needs to be a favourable niche that needs to be accepted by the company without raising any questions. One of the things that need to be considered is coming up with better ways of making the niche propitious to help satisfy the company needs. In the event where the company can identify the niche created in the company and coming up with ways of filling it, the competitors will find it difficult trying to capture the niche. In short the company will be ahead of its competitors in the manner that they cannot catch up. Propitious niches are termed to come and go any time depending with the environmental changes within the company. The changes can either be external or internal, depending on how the company operates. In the event where the ecological changes within the company, then the niche will disappear. It is also likely to disappear where the factors cannot be solved by the company, way beyond. The other thing that can affect the propitious niche is any changes that are made within the organization. For instance, if the management of the company changes then everything changes.
- What does a business have to consider when trying to follow a cost leadership strategy and a differentiation strategy simultaneously? Can you name a company doing this?
When the business leader of the company follows the cost of leadership strategy, then changes are likely to be felt in the company. The leadership, in this case, needs to focus more on coming up with a different strategy which will impact the business as a whole. The strategy needs to be planned carefully to ensure that it serves its intended purpose. The other thing is to look closely at the niche market. After looking at the niche, the next thing is to look at the products and be able to choose the right pricing for the products and come up with and determine the cost of leadership position within the market. In the vent where they get to decide the price point, she will choose additional features or another kind of services that the company can offer with the same price. It will help ensure that there is product differentiation within the company, which is very different from other products that lie in the same range. “A cost leadership strategy is when a company, business or unit designs, produces and the market at comparable product or service more efficiently than their competitors” (Wheelen et al. 2018).
An excellent example of a company that has been involved in this case is Xiaomi, one of the smartphone manufactures. The company sells its smartphones which have a quad processor of 2GB ram, and they go for less than $180. There are other companies whose products range in these categories. Some other companies sell their phones at this range, but Xiaomi has a different differentiation strategy of selling their products.
References
Wheelen, Thomas L., Alan N. Hoffman, J. David Hunger, and Charles E. Bamford.2018. Strategic Management and Business Policy: Globalization, Innovation, and Sustainability. New York, NY: Pearson, 2018.