A company’s strategic choices shape how that firm will operate and react to the use of its own resources as well as the affects of external factors. Porter tells us that firm’s position themselves by leveraging their strength’s. He argued that strengths ultimately fall into one of two headings: cost advantage and differentiation (Quickmba). CPK chooses and specifically points out differentiation as its main strategy. CPK differentiates itself through product quality through the use of quality ingredients, menu design and innovation, and expanded services and offerings beyond their main dining experience. This all falls under subcategory of differentiation known as “Quality Strategy”, which sets CPK apart from its competitors. CPK …show more content…
A successful differentiation strategy will create customer value that is perceived as such by its customers. Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. CPK differentiates itself through product quality through the use of quality ingredients, menu design and innovation, and expanded services and offerings beyond their main dining experience. This all falls under subcategory of differentiation known as “Quality Strategy”, which sets CPK apart from its competitors. As a result of this quality, CPK has branded itself through a very loyal customer base that consistently markets for the company through rave reviews and word of mouth advertising. Firms that succeed in differentiation strategy often have the following internal strengths (QuickMBA): • Access to leading scientific research • Highly skilled and creative product development team • Strong sales team with the ability to successfully communicate the perceived strengths of the product • Corporate reputation for quality and innovation Due to high levels of rivalry in the food industry there is always an incentive to be innovative and continuously improve. There is also always the chance that any differentiation could be copied by competitors. Therefore, innovation remains a huge part of CPK’s
Although there is not a large amount of new food entering the market, there are many new brands and creative packaging constantly being introduced into the grocery market, and food companies are constantly competing for slots in grocery stores. For these reasons, product innovation is key to the grocery market.
The differentiation strategy aims at creating a service that is unique. The key is to be viewed as valuable by the customer. According to Porter corporations should not focus their corporate energy into being better than their competitors, instead, try to be different. Benchmarking the competitor can result in what Porter describes as the competitive convergence, where, to the customer, everyone looks like everyone else. For”Broadway’s Café” to stay competitive in 21st century their strategy should be about performing different activities from rivals or similar activities differently.
DQ1. Recall how you determined if you created value and sustained competitive advantage for Kudler Fine Foods. While implementing this strategy, what factors would you monitor and evaluate to determine if you were successful? Why would monitoring and evaluating these factors be important?
In the current retail food industry there are numerous competitors fighting for the same dollar. It is important for each company to identify their target market, identify their competitors, and then build their marketing plan. The information below will detail Kudler Fine Foods marketing strategy which includes expanding its services, improving its efficiency of operations, and increasing the customer purchase cycle. The paper will also discuss areas where Kudler Fine Foods needs to further their market research.
Kudler needs to develop a strategy for the company to keep it sustain profitability. The strategy will establish a profitable position against the five forces listed within Porter’s model. This strategy is important to Kudler to perform activities and services differently from their competitors. This strategy should set Kudler apart from the competition. The Porter’s model suggests the following response strategies to competitive forces: cost leadership, differentiation, focus strategy, growth strategy, alliances strategy, and customer-oriented strategy (Turban, Rainer, & Potter, 2003).
There are a number of ways a business can gain a competitive edge: excellent service, top of the range products, professional sales techniques and efficient and effective marketing strategies can contribute to the business and make us a market leader. Listening to our customers and acting on feedback can not only keep our loyal customers but encourage new customers. Having a recipe that incorporates all the above is a simple but effective method.
The focused differentiation strategy largely depends on a buyer segment that seeks special product attributes (i.e. healthier food, lower comparative cost, quick service) and on the company's ability to stand apart from its rivals (Thompson et. al, 153). In its uniqueness, Zoës Kitchen has the ability to be different and had no national rivals emulating its format or menu.
Panera’s over time has grows to become a leader in the american food industry.In this particular case ,the strategy use by panera is based on product differentiation and on offering a better pricing.This strategy comes from the company blueprint called Concept Essence which consist of competitive advantage via (a) great, high quality, healthful food and (b) superior customer service.The concept also include a product differentiation strategies involve a selection of artisan breads, bagels and pastry products that are handcrafted and baked, designing bakery-cafes that are pleasing and inviting, high quality foods, a menu with sufficient diverse offering, providing courteous, capable and efficient customer service and offering patrons a sufficient
In July of 2007, California Pizza Kitchen (CPK), a casual dining pizzeria started in California by co-owners Rick Rosenfield and Larry Flax, was faced with the decision to invest in a stock repurchase program. Led by Chief Financial Officer Susan Collyns, the financial team of CPK was reviewing the preliminary results for the second quarter to determine if the stock repurchase program would provide a significant financial leverage for the company. The goal was to determine if the company can maintain the necessary financial stability to meet the expected growth trajectory for 2008 while utilizing debt
In 1985 Michael Porter surmised that a market can be subjected into different strategies, thus, three variations of competitive advantage were born. The differentiation strategy is the focus for the purpose of this paper. Furthermore, the differentiation strategy in its most exposed form is a strategy that places prominence toward the brand name and advantage is the prestige that follows. This type of angle draws in a specific high-end consumers which in turn sets its corner of the market apart from its competition. Additionally, in this advantage there is a uniqueness perceived by the consumer, industry wide. The differentiation strategy is distinct in attributes indescribable by price but all the same customers are more than willing to pay a premium for the product or service. Firms that are successful in this advantage are fully equipped with a product development team high in creativity and innovation. Additionally, this strategy is only able to be an advantage if a firm is able to access an unlimited amount of research.
In order to achieve these strategies company undertakes a 5 P’s integrated approach to people, products, place, price and promotion. Company relies on its ability to continue to innovate and reinvesting in the restaurants to develop them according to system plans for world-wide growth, being consistent in providing excellent customer service and clean and friendly environment which enriches customers experience and create an overall difference that balances profitability with value.
There are two schools of thought pertaining to how firms should choose the competitive strategy that best suits them. One is of the opinion that firms should choose one of the generic strategies and commit all resources to making it work. Porter belongs to this category. They believe that the value chain necessary for cost leadership is quite different from that of differentiation strategy and that while differentiation deals with better quality, cost leadership deals with lowering costs wherever possible.(DESS and DAVIES 1984) What porter articulated here is that there is need for strategic clarity.
The Papa John’s case provides a classic example of a company that entered a highly saturated and mature market and was able to enjoy immense growth and success due to its creative product differentiation strategy. The company’s motto has been consistent from the day the first restaurant was opened: Superior ingredients and a superior product from its competitors. John Schnatter took the basic concept of product differentiation and positioning to new heights as he created a strong global brand, which had an unprecedented track record of success and customer loyalty over its competitor’s pizza products.
Providing an exceptional product or experience to the client which gives an added value may be termed as Differentiation Strategy. Differentiation does not just mean the way the final product shows up or the features it gives, but advancement and imagination may be integrated in everything the organization does from the raw materials to post-sales assistance in a manner that the clients may derive value from it. Considering Theme Restaurants as an example, at present the theme restaurant brand which leads the Restaurant industry with its competitive advantage is Hard Rock Cafe on the grounds that they offer a “Dining Experience” which is found nowhere else and is remarkable in every aspect (Heizer & Render, 2013, pp. 72).
Weaknesses-According to our analysis, it lacks a sustainable competitive advantage. According to Miles and Snow’s adaptive strategies, Quik Chik falls into ‘analyzer’. As it analyzes its competitors and adopt strategies according to their strategic actions and performs in detail analysis of new business ideas like expansion etc. before making final decision. Moreover, it does not follow complete cost leadership or differentiation strategy from the Porter’s Generic competitive strategies rather it follows the integrated low-cost differentiation strategy with low level of differentiation (referring to trans-fat free canola oil and 100% halal hand slaughtered