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NEW Glo-Bus - AC Camera and UAV Drone - Business Strategy - Understanding Products 10 - Crafting a Strategy to Be Competitively Successful

NEW Glo-Bus - AC Camera and UAV Drone - Business Strategy

New GLO-BUS — 2017 Edition

NEW Glo-Bus 2017 - AC Camera and UAV Drone - Business Strategy

Action-Capture Camera Design

UAV Drone Design - Crafting a Strategy to Be Competitively Successful   

NEW Glo-Bus 2017 - AC Camera and UAV Drone - Business Strategy

Action-Capture Camera Design

UAV Drone Design

Crafting a Strategy to Be Competitively Successful   

With so many competitive factors determining unit sales and market shares of and with the sales and market share impacts of these factors varying from year-to-year because of shifts in each company’s competitive advantage/disadvantage versus rivals on all these factors, you have wide-ranging options for crafting a strategy capable of producing good overall company performance and competing successfully in the action-camera and drones markets. For example, you can:

  • Employ a low-cost leadership strategy and pursue a competitive advantage keyed to operating more cost-efficiently than rivals and thereby being in a strong position to profitably sell action cameras and/or drones at prices below those of rivals.
  • Employ a strategy to differentiate your company’s cameras and/or drones from rival brands based on such attributes as product performance and quality, number of models, warranties, and other competitive factors that matter to buyers—and thereby outcompete rivals with a product offering that has greater overall appeal to a highly profitable number of buyers.
  • Employ a “more value for the money” strategy (for example, selling 8-star cameras and drones at lower prices than other 8-star brands) where your competitive advantage is an ability to incorporate “upscale” product attributes with high buyer appeal at a lower cost than rivals—and thereby underprice rival brands having comparable attributes and P/Q ratings.
  • Focus your strategic efforts on being the clear market leader in either action-capture cameras or UAV drones.
  • Focus your company’s competitive efforts on gaining sales and market share in those geographic markets where your company already has high sales and/or attractively large profit margins (as compared to other regions) and putting less emphasis on winning sales in those regions where your company has a low market share or small profit margins and regions where competition is especially fierce (as compared to other regions).
  • Pursue essentially the same strategy and competitive advantage across all four regions or, instead, craft regional strategies tailored to improve the company’s competitiveness region by-region and counteract/overcome the strategic actions and competitive maneuvers of specific rivals in specific regions There’s a very big window of opportunity for you to craft some version of the above strategic approaches.

And because GLO-BUS has no built-in bias that favors any one strategy over all the others, there are multiple strategic approaches and sets of competitive efforts/action that, if properly designed and well-executed, are capable of producing competitive success in the global market for cameras/drones, provided they are not overpowered or thwarted by even more potent strategic approaches and competitive actions/efforts that are well-executed by rival companies.

No One Strategy for Competing “Guarantees” Success.

Because the sales and market share outcomes for a company are based on the competitiveness and overall buyer appeal of its brand versus the competitiveness and overall buyer appeal of rival brands, it is not conceptually and competitively possible for there to be any one surefire strategy or competitive approach or combination of competitive efforts/actions that is “guaranteed” to propel your company to the top. Consider the following:  

  • Are the companies that are being outperformed by the company pursuing a so-called surefire strategy going to sit idly, do nothing, and watch that company overwhelm them, decision round after decision round thereby running the risk of a poor grade? Not likely. It is unreasonable to expect any company to passively accept competitive defeat and unconditionally surrender.
  • Do managers of rival companies whose performance is suffering have strong incentives to aggressively pursue actions to boost the performance of their companies? Certainly.
  • Are all the managers of rival companies lack the capacity figure out why their companies are being outcompeted and outperformed? Very unlikely.
  • Aren’t the reasons fairly obvious? (prices and/or P/Q ratings and/or number of models offered and/or warranties and/or assorted marketing efforts that are not sufficiently competitive with those of the high-performing company and that have resulted in weak buyer appeal) Most certainly.
  • Might part of the reason for their underperformance also be due to “high” unit costs that are squeezing profitability? Yes—at least for some companies.
  • Can one or more of the companies being outcompeted and outperformed be reasonably expected to launch a strong counterattack and initiate new and potentially potent competitive efforts to improve their company’s performance? Yes. There is nothing to prevent any company from reducing prices and/or increasing P/Q ratings and/or adding models and/or lengthening warranties and/or boosting its marketing efforts (perhaps by significant amounts), and there is plenty of reason for underperforming companies to pursue such actions aggressively.
  • Might such actions prove effective in bolstering the competitiveness and overall buyer appeal of their brands, thereby narrowing the competitive gap and the performance gap between the underperforming companies and the industry leader? Definitely. It is common for underperforming companies to reverse their fortunes by undertaking actions that succeed in boosting buyer appeal for their product offerings and greatly improving their overall performance—this occurs both in GLO-BUS and in the real world.
  • Is there a reasonable chance that one or more companies could even overtake the industry leader by devising a potent strategy and series of competitive actions/maneuvers that enable it to outcompete the former industry leader in the marketplace and become the best performing company in the industry? It should come as no surprise—there are many instances, both in GLO-BUS and the real-world, where well-managed trailing companies have overtaken industry leaders.

There is no such thing as a “magic bullet” (undefeatable) strategy or a strategy that is “guaranteed” to outperform all other strategies, irrespective of the strategies and competitive actions undertaken by rival companies.

Always remember that what drives the sales/market share success/failure of any one company’s strategy for competing in the marketplace is how well the overall buyer appeal and competitiveness of its cameras/drones matches up in each decision round with the overall buyer appeal and competitiveness of the cameras/drones of rival companies on each of the competitive factors.

As long as your company’s competitive efforts/actions and decision entries produce an overall buyer appeal for your camera/drone product line as compared to the offerings of rival companies and so long as your company exerts sufficiently aggressive competitive efforts, then you can expect a satisfactory percentage of buyers to prefer purchasing your cameras/drones over rival company brands.

While it is important to win attractive sales/market shares in each region, such outcomes are not sufficient to produce the best profit outcomes.

For a company to rank among the industry’s top-performers, its net revenues must cover costs by an amount sufficient to produce good-to-excellent profitability. This requires not only sufficient competitive success in the marketplace to produce attractively large revenues but also consistent managerial success in operating the company cost efficiently—operating inefficiencies and wasteful spending impair a company’s profitability and overall performance.   Just as in real-world companies that operate in competitive marketplaces, your company’s strategy and competitive actions/efforts will need to evolve as the decision rounds unfold in order to respond and adjust to the shifting strategies and competitive efforts of rival companies.

So even if your company’s performance in the year just completed is quite good, do not expect to lock your competitive efforts and decisions entries in concrete—some adjustments (maybe many adjustments) will almost certainly be needed to counter the freshly initiated competitive efforts/actions of rivals.

Advice from Outside Sources.

Because sales volumes and market shares in are 100%-determined by how well the buyer appeal and competitive attributes of your company’s offerings of cameras/drones compare against those of the specific rival companies you are competing against, you are well-advised to be highly skeptical of any advice and tips regarding what to do that comes from prior participants in the GLO-BUS exercise at your school or from sources you discover from internet searches (like this website – please consider the real situations, guides and tips are just how to play, how to avoid mitakes, and how to manage the companies and make proper decisions).

While such information may be interesting and “nice to know,” the hard truth is that your company will be competing against companies run by students in your class—any “folklore” about the experiences of companies run by students from previous classes at your school or elsewhere in the are mostly “noise” or of dubious. The chance that the head-to-head competition and outcomes in past industry will closely match what will occur in your industry is small.

So following such advice carries significant risk of being “wrong” or “misguided” when it comes to figuring out what your company needs to do to compete effectively against the rival companies in your class.   













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