Models of analysis

Question 1

Balance Scorecard

Answer 1

Kaplan and Norton

Financial - ROI analysis (higher the better)

Organisational Capacity - Employee retention

Customer - Service ratings

Internal process - New product lead time

Question 2

Bowmans Strategy Clock

Answer 2

Tesla - focused differentiation/differentiation/hybrid

Kodak- Loss of market share

Starbucks - Differentiation

Air Asia - Low price/Cost minimisation

Value to customer

Pricing

Differentiation - High quality, good brand perception

Focused Differentiation - This the positioning strategy adopted by luxury brands, who aim to achieve premium prices by highly targeted segmentation, promotion and distribution. Apple

Risky, High margins - Other than in the short-term, Risky High Margins is an uncompetitive strategy. Being able to sell for a price premium without justification is tough in any normal competitive market.

Monopoly Pricing -

Loss of market share -

Low price/low added value - This is a bargain basement strategy. The only way to remain competitive is to be as “cheap as chips” and hope that no-one else is able to undercut you.

Low price - Cost minimisation , economies of scale, price wars

Hybrid - persuading customers of high added value and low cost

Question 3

Porters 5 Forces

Answer 3

Competitive rivalry

Threat of new entrants -

Buyer power

Threat of substitution

Supplier Power