EASTERN UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

Final Examination

Semester: Spring 2020

Course Code: MGT 402, Course Title: Business Strategy

Course Teacher: Parisa Islam, Assistant Professor, FBA

Name: Monjurul Bashar Tomal

ID : 163200031
 Ans To The Question No : 1

A)

The strategy Best Buy employs is differentiation and not low-cost or best cost
provider strategy. Instead they have differentiated themselves in relation to their
strategy of being different from others in its specialized field. Their staff is extra
ordinary as they are not just simple sales persons but know the exact
specifications of the items they are selling. Other example of Best Buys
differentiation is their Geek Squad which provides the installation of hardware
and software and are expert in troubleshooting this installation processes. The
differentiation strategy of Best Buy is an integrated set of actions taken to
produce goods and services at an acceptable cost that customer perceive as being
different in ways that are important to them. Under this strategy Best Buy tries to
offer the products which are distinct in the perception of customer. They are best
service Provider Company, their product performance is very good and unique
product features. They have knowledgeable staffs so that customer can get the
complete knowledge about the product and they easily train them for how to run
the electronic goods properly. The differentiation may be based on product
parameters, service back up, promotion and images. The product is differentiated
through unique product performance features, and services, adopting new
technologies or providing detailed information about the product.

(B)

B)

Among the Super shops of Bangladesh Agora, Meena Bazaar, Prince Bazar,
Shopno, Nandan , which one is following which generic strategy explaining below:
Agora : Agora generic strategy is best value-strategy. Agora, being a retail service
store, does not sell its own products. So its marketing strategy relies very heavily
upon the products that the store keeps for the prospective customers, the price
at which they provide those products and the manner in which the products
reach the customers at the store. Their aim is to offer an extensive selection of
brands and materials providing choice of different sizes at different prices. The
marketing strategy employed by the stores is focused on the
product , price ,promotion ,distribution.

Meena Bazaar : Meena bazaar focus on Best value. In order to provide the
customers with the best possible value for their money, they procure the
products directly from the farmers, removing the middlemen, while ensuring high
quality, freshness and continuous availability. Meena Bazar is also known as one
of the trustworthy food suppliers of the nation. Meena Bazar is committed to
deliver the best available products to the customers and is now expanding more
to serve Bangladeshi customers better.

Shwapno:IT has been in Super shop chain operation for many years in
Bangladesh with different outlets in Dhaka, Chittagong, and other cities. It has
recently extended its operation to the next level by opening its online version.
Swapno offers to the consumes huge variety of products. That indicates Swapno is
following a broad differentiation strategy and a low-cost provider strategy.

Prince Bazar: Prince Bazar focus on a niche strategy .It offers about 20000
items. The aim of the Prince Bazar is to ensure fresh product in the consumers
daily life.

Nandan : Nandan focus on differentiations strategy. Nandan takes an approach

to develop a unique product and service that customers will find better than, or in
another way distinctive from, products or services offered by competitors.
 Ans To The Question No : 2

As found on BMW’s website at

www.bmwgroup.com, BMW
presents these ways
in which the BMW company
seeks to differentiate itself from
rival automakers:
Having the MOST
ASPIRATION BRANDS –
growing their brand through
focused
brand management and
outstanding design. This can
be seen in the “ultimate driving
machine” – as one of the
company slogans, this provides
insights into the company’s
philosophy of providing
products which excel in the
areas of performance, quality,
exclusivity and customer
satisfaction. This in turn creates
buyer loyalty to its brands.
Shaping FUTURE
TECHNOLOGIES – BMW
strives to develop innovative
technologies for tomorrow’s
products and services. They
seek to embrace the
opportunities that the changes in
the automobile industry offer
and are committed to
expanding their technological
competence in the coming
years. This works to
increase unit sales, as buyers
become won over to the
products due to their
differentiating technologies
features.
Offering the BEST
CUSTOMER EXPERIENCE –
focusing solely on premium
products and services,
anticipating customer needs and
desires, insisting on have a
unique understanding of the
customer through ongoing,
direct dialogue allows BMW
to provide a high product in
which they can command a
premium price.
BMW’s differentiation strategy
has been successful in
producing a competitive
advantage, based on both its key
non-financial performance
indicators, which show
year over year growth for the
past 5 years in workforce and
all time high automotive
deliveries; as well as its
financial performance
indicators, which in turn show
revenue
which has increased and group
profit before tax reaching its
second highest figure in
the company’s history.
As found on BMW’s website at
www.bmwgroup.com, BMW
presents these ways
in which the BMW company
seeks to differentiate itself from
rival automakers:
Having the MOST
ASPIRATION BRANDS –
growing their brand through
focused
brand management and
outstanding design. This can
be seen in the “ultimate driving
machine” – as one of the
company slogans, this provides
insights into the company’s
philosophy of providing
products which excel in the
areas of performance, quality,
exclusivity and customer
satisfaction. This in turn creates
buyer loyalty to its brands.
Shaping FUTURE
TECHNOLOGIES – BMW
strives to develop innovative
technologies for tomorrow’s
products and services. They
seek to embrace the
opportunities that the changes in
the automobile industry offer
and are committed to
expanding their technological
competence in the coming
years. This works to
increase unit sales, as buyers
become won over to the
products due to their
differentiating technologies
features.
Offering the BEST
CUSTOMER EXPERIENCE –
focusing solely on premium
products and services,
anticipating customer needs and
desires, insisting on have a
unique understanding of the
customer through ongoing,
direct dialogue allows BMW
to provide a high product in
which they can command a
premium price.
BMW’s differentiation strategy
has been successful in
producing a competitive
advantage, based on both its key
non-financial performance
indicators, which show
year over year growth for the
past 5 years in workforce and
all time high automotive
deliveries; as well as its
financial performance
indicators, which in turn show
revenue
which has increased and group
profit before tax reaching its
second highest figure in
the company’s history.
As found on BMW’s website at
www.bmwgroup.com, BMW
presents these ways
in which the BMW company
seeks to differentiate itself from
rival automakers:
Having the MOST
ASPIRATION BRANDS –
growing their brand through
focused
brand management and
outstanding design. This can
be seen in the “ultimate driving
machine” – as one of the
company slogans, this provides
insights into the company’s
philosophy of providing
products which excel in the
areas of performance, quality,
exclusivity and customer
satisfaction. This in turn creates
buyer loyalty to its brands.
Shaping FUTURE
TECHNOLOGIES – BMW
strives to develop innovative
technologies for tomorrow’s
products and services. They
seek to embrace the
opportunities that the changes in
the automobile industry offer
and are committed to
expanding their technological
competence in the coming
years. This works to
increase unit sales, as buyers
become won over to the
products due to their
differentiating technologies
features.
Offering the BEST
CUSTOMER EXPERIENCE –
focusing solely on premium
products and services,
anticipating customer needs and
desires, insisting on have a
unique understanding of the
customer through ongoing,
direct dialogue allows BMW
to provide a high product in
which they can command a
premium price.
BMW’s differentiation strategy
has been successful in
producing a competitive
advantage, based on both its key
non-financial performance
indicators, which show
year over year growth for the
past 5 years in workforce and
all time high automotive
deliveries; as well as its
financial performance
indicators, which in turn show
revenue
which has increased and group
profit before tax reaching its
second highest figure in
the company’s history.
A)
As found on BMW’s website at www.bmwgroup.com, BMW presents these
ways in which the BMW company seeks to differentiate itself from rival
automakers:

1. Having the most aspiration brands – growing their brand through

focused brand management and outstanding design. This can be seen in
the ultimate driving machine as one of the company slogans, this provides
insights into the company’s philosophy of providing products which excel in
the areas of performance, quality, exclusivity and customer satisfaction.
This in turn creates buyer loyalty to its brands.

2. Shaping FUTURE TECHNOLOGIES : BMW strives to develop innovative

technologies for tomorrow’s products and services. They seek to embrace
the opportunities that the changes in the automobile industry offer and are
committed to expanding their technological competence in the coming
years. This works to increase unit sales, as buyers become won over to the
products due to their differentiating technologies features.
3. Offering the BEST CUSTOMER EXPERIENCE : Focusing solely on premium
products and services, anticipating customer needs and desires, insisting on
have a unique understanding of the customer through ongoing, direct
dialogue allows BMW to provide a high product in which they can
command a premium price.

BMW’s differentiation strategy has been successful in producing a

competitive advantage, based on both its key non-financial performance
indicators, which show year over year growth for the past 5 years in
workforce and all time high automotive deliveries; as well as its financial
performance indicators, which in turn show revenuewhich has increased
and group profit before tax reaching its second highest figure in the
company’s history.

B.
How BMW can manage their value chain to create the differentiating
attributes and my opinion discussing below:
BMW has maintained a strong brand image in the global market.
Consistent focus on quality and innovation has also helped it build strong
brand equity and achieve higher customer loyalty. BMW uses digital
channels mostly for marketing. Apart from its website, the company also
uses social media channels for promotions and customer engagement.
Moreover, BMW Group regularly benefits from product placement
marketing strategy in popular movies and shows, as it was the case with
the promotion of BMW MINI Cooper in The Italian Job 2003, as well as,
James Bond and Mission Impossible franchises. So, by doing such
innovative marketing BMW creates a significance differentiation in
Marketing and sales activity. The product range of BMW includes
automobiles and motorcycles. Apart from the BMW cars and motorcycles,
it also owns and sells cars under the Mini and Rolls-Royce. Rolls-Royce
symbolizes the luxury. By introducing electric cars, innovations and
improvements in its provision of the customer services in a regular manner,
BMW makes a significance differentiation in customer service activities.

Ans to the question no 3

a)
Strategic Alliance : A strategic alliance is an arrangement between two
companies to undertake a mutually beneficial project while each retains its
independence. The agreement is less complex and less binding than a joint
venture, in which two businesses pool resources to create a separate
business entity.

Joint Venture : A strategic joint venture is a business agreement that is

actively engaged by two companies who make a concerted decision to work
together to achieve a specific set of goals. Joint ventures have helped
numerous companies achieve access to emerging markets that they would
otherwise have difficulty breaking into.

I identify, The deal between Starbucks and Barnes & Noble is a strategic
alliance. Starbucks brews the coffee. Barnes & Noble stocks the books.
Both companies do what they do best while sharing the costs of space to
the benefit of both companies. Over the years, Starbucks has become
synonymous with coffee. Like it or hate it, you instantly recognize the
name. With a Starbucks location in most Barnes & Noble bookstores,
customers have twice the reason to shop there. Coffee break, and browse
the latest bestsellers shelf all in one stop.But this strategic alliance has
kept Barnes & Noble’s doors open, it is worth pointing out that many of its
major competitors have since closed up shop. In a time when digital media
sales are constantly on the rise, purveyors of printed literature need to be
savvy to stay in business. Barnes and Noble has certainly tried to stay
ahead of the curve. Note that in all five cases, the companies that formed
these strategic alliances did not share much in common prior to their
partnership. The one common point might be the customer base, albeit an
indirect relationship in most cases. Most likely, the marketing teams for
both corporations began by reviewing potential strategic alliances and
determining whether the partnership would be beneficial in both long and
short term.

B.
Strategic alliances do come with some possible problem and risks. One
problem is sharing. Strategic alliances require you to share resources and
profits, and often require you to share knowledge and skills as well.
Sharing knowledge and skills can be problematic if they involve trade
secrets. All business alliances require concrete goals and purpose.
Otherwise, they fall into the category of failure quite quickly. Clarity of
objectives desired by all parties in an alliance is a must. They should also
have equitable benefits to all sides in order to make them appealing. The
problem of first movers include the risk of products being copied or
improved upon by the competition. Amazon and eBay are examples of
companies that enjoy first-mover status.

Ans to the question no 5

A.
The first-mover advantage refers to an advantage gained by a company
that first introduces a product or service to the market. The first-mover
advantage allows a company to establish strong brand recognition and
product or service loyalty before other entrants.It is important to note that
the first-mover advantage only refers to a large company that moves into a
market.

Amazon created the first online bookstore, which was immensely

successful. By the time other retailers established an online bookstore
presence, Amazon had achieved significant brand recognition and parlayed
its first-mover advantage into marketing a range of additional, unrelated
products. According to Forbes's The World's Most Innovative Companies
2019 ranking, Amazon ranks second. It has annual revenues of $280 billion
and, through the end of 2019, had a 20% annual sales growth rate.

In this case, the specific conditions that lead Amazon.com to first-mover

advantages are as follows:
1. Early entry into online retailing: As Amazon.com entered first to online
retailing it gives it the
first mover advantage.
2. The expanded product lines: Amazon.com’s introduces an expanding
products line such as
sporting goods, tools, toys, grocery items, electronics, and digital music
downloads, giving it,
another means of maintaining its experience and scale-based advantages.
3. Reputational benefits is another condition that helps Amazon.com to get
first mover advantage
because as Amazon enter first into online retailing market it created good
impression among the
customers.
 ( B)

B.
Being first typically enables a company to establish strong brand
recognition and customer loyalty before competitors enter the arena.
Other advantages include additional time to perfect its product or service
and setting the market price for the new item.
There are also some disadvantages to being a first mover, such as:
1.First movers bear the economic burden of developing a new market that
followers into the market can exploit.
2.Followers into the market can learn from the mistakes of the first movers,
allowing them to reduce their risk and avoid making costly mistakes.

As I am the CEO of a potential Late-Mover Company in the same online

retailing market, I could have been the advantages of :
1. Market Viability
2. Tweaks and Improvements
3. Limited Financial Risk

Market Viability:
Late movers have the opportunity to see how well a new idea, concept or
approach is received by the general consumer public before getting
involved. This helps mitigate a number of risks and limits the amount of
research and development invested in gauging public perception. In other
words, late movers can learn from the mistakes of early movers when it
comes to testing market waters.

Tweaks and Improvements :

A late-moving business has an opportunity to watch early movers’ trials and
make adjustments before jumping into the fray. This not only reduces the
potential for losing investment dollars, but it also positions a late-moving
business to quickly introduce its own “new and improved version” of an
early moving product. This approach can make a late-moving business
appear more innovative or cutting edge, even though it doesn’t hold
pioneer status.

Limited Financial Risk:

The first businesses into a marketplace often have the most at risk in the
event a product or service flops. A late-moving company has the advantage
of watching how things like product features, price points and functionality
are received, and it can tailor its own approach accordingly. This means less
time and money put into initial product development, creating prototypes,
conducting market studies and identifying a product audience.