Cost Leadership Strategy
4
1. Cost leadership strategy 2. Superior quality services and products 3. Strategic acquisitions 4. Efficient distribution chain and logistics 5. Economies of scope 1. Only online presence 2. Selling at zero margins 3. Negative publicity 1. Online payment system 2. Release more its own brand products and services 3. Increase services and product portfolio through acquisitions 4. Open more online stores in other countries 5. Physical presence 1. Online security 2. Lawsuits 3. Strategic alliances 4. Legislation against tax avoidance 5. Regional low cost online retailers AMAZON Coca Cola 1. The best global brand in the world in terms of value ($77,839 billion) 2. World’s largest market share in beverage 3. Strong marketing and advertising 4. Most extensive beverage distribution channel 5. Customer loyalty 6. Bargaining power over suppliers 7. Corporate social responsibility 1. Significant focus on carbonated drinks 2. Undiversified product portfolio 3. High debt level due to acquisitions 4. Negative publicity 5. Brand failures or many brands with insignificant amount of revenues 1. Bottled water consumption growth 2. Increasing demand for healthy food and beverage 3. Growing beverages consumption in 1. Changes in consumer preferences 2. Water scarcity 3. Strong dollar 4. Legal requirements to disclose
Transcript of Cost Leadership Strategy
1. Cost leadership strategy
2. Superior quality services and products
3. Strategic acquisitions
4. Efficient distribution chain and logistics
5. Economies of scope
1. Only online presence
2. Selling at zero margins
3. Negative publicity
1. Online payment system
2. Release more its own brand products and services
3. Increase services and product portfolio through acquisitions
4. Open more online stores in other countries
5. Physical presence
1. Online security
2. Lawsuits
3. Strategic alliances
4. Legislation against tax avoidance
5. Regional low cost online retailers
AMAZON
Coca Cola
1. The best global brand in the world in terms of value ($77,839 billion)
2. Worlds largest market share in beverage
3. Strong marketing and advertising
4. Most extensive beverage distribution channel
5. Customer loyalty
6. Bargaining power over suppliers
7. Corporate social responsibility
1. Significant focus on carbonated drinks
2. Undiversified product portfolio
3. High debt level due to acquisitions
4. Negative publicity
5. Brand failures or many brands with insignificant amount of revenues
1. Bottled water consumption growth
2. Increasing demand for healthy food and beverage
3. Growing beverages consumption in emerging markets (especially BRIC)
4. Growth through acquisitions
1. Changes in consumer preferences
2. Water scarcity
3. Strong dollar
4. Legal requirements to disclose negative information on product labels
5. Decreasing gross profit and net profit margins
6. Competition from PepsiCo
7. Saturated carbonated drinks market
1. Integration with websites and applications
2. More than a billion active monthly users
3. Excellent users experience
4. Understanding of users needs and behavior
1. Weak CTR of advertisements
2. Social network lacks of some features
3. One source of revenues advertisements on Facebook
4. Attitude towards users privacy
5. Lack of website customization
6. Weak protection of users information
1. Increasing number of people using Facebook through mobile devices
2. Expansion to China
3. Diversify sources of revenue
4. Open Facebook marketplace
1. Increasing number of mobile internet users
2. Users using ad-block extensions
3. Slow growth rate of online advertising
4. Identity thefts
5. Weak business model
1. Open source products and services
2. Quality and customer experience are the primary objects
3. Financial situation
4. Access to the widest group of internet users worldwide
5. Strong patents portfolio
6. Product integration
7. Culture of innovation
1. Relies on one source of income
2. Unprofitable products
3. Patent litigations
1. Growing number of mobile internet users
2. Obtaining patents through acquisitions
3. Driverless electronic cars
4. Growing into electronics industry
5. Google fiber cables
1. Growing number of mobile internet users
2. Unprofitable products
3. EU antitrust laws
4. Competition from Microsoft
Microsoft
1. Brand loyalty
2. Brand reputation
3. Easy to use software
4. Strong distribution channels
5. Robust financial performance
6. Acquisition of Skype
1. Poor acquisitions and investments
2. Dependence on hardware manufacturers
3. Criticism over security flaws
4. Mature PC markets
5. Slow to innovate
1. Cloud based services
2. Mobile advertising
3. Mobile device industry
4. Growth through acquisitions
1. Intense competition in software products
2. Changing consumer needs and habits
3. Open source projects
4. Potential lawsuits
Pepsi
1. Product diversity
2. Extensive distribution channel
3. Corporate Social Responsibility (CSR) projects
4. Competency in mergers and acquisitions
5. 22 brands earning more than $1 billion a year
6. Successful marketing and advertising campaigns
7. Complementary product sales
8. Proactive and progressive
1. Over-dependence on Wal-Mart
2. Low pricing
3. Questionable practices (using tap water but labeling it as mountain spring water)
4. Much weaker brand awareness and market share in the world beverage market compared to Coca-Cola
5. Too low net profit margin
1. Growing beverages and snacks consumption in emerging markets (especially BRIC)
2. Increasing demand for healthy food and beverages
3. Further expansion through acquisitions
4. Bottled water consumption growth
5. Savory snacks consumption growth
1. Changes in consumer tastes
2. Water scarcity
3. Decreasing gross profit margin
4. Legal requirements to disclose negative information on product labels
5. Strong dollar
6. Increased competition from Snyders
