Strategic Management

Individual Assignment
Strategic Thinking Write Up

Submitted By-
Shalini Budhwani
191245
Section B
MBA FT 2019-2021
Submitted to-
Dr. Shahir Bhatt

Date: 10th February 2020

 Exercise 1: Business and Blogs
Marc Cain Blog

About Blog- From now on you can experience Marc Cain up close and personal. Every
week, here on the company blog, they're going to show you what inspires them, how they
work, what they love, and the faces behind the fashion company, how their products and
collections are created and what happens behind the scenes at Marc Cain. They’ll also be
giving you the latest news, trends, interviews, style guides and lifestyle tips.
Frequency 4 posts / week
Since Dec 2015
Blog marc-cain.com/blog/en/

The blog of the company is more like a market brochure and was much formal content was
available which post around 4 posts per week on regular basis. The blog also allows
commenting by giving contact data of an individual as shown in picture below.
  Have you ever used blogs to help make decisions about something that
you are considering purchasing? If so, how did the blog material affect
your decision? What factors would make you more (or less) likely to rely
on a blog in making your decision?

Yes I usually use blogs before taking any purchasing decisions. There are lots of detailed
online product reviews written by experts that are posted on blogs which helps to take
right decision.

Factors that would make me more (or less) likely to rely on a blog in making
decision are:

 Reviews by other customers

 Replies by company personnel
 Frequency of posts
 Timing of replies
 More busier the blog, more is brand awareness among customers
 opportunity for you to connect with your existing user of product

 How did the content of corporate blogs affect your perception of that
company and its good and services? Did it make you more or less likely to
view the company favourably, or have no effect at all?

I as a customer purchase a product after I am impressed with the reviews that I

read in the blogs. Most of the people who like to read blogs are in between 25
– 34 years old. Consumers in this group tend to rely on blog as the most
important resources when coming to make a decision to buy something.

Positive feedbacks makes the image of company in favourable from the

customers end and negative feedback makes customer reluctant to choose that
product for purchasing which is not in the favour of company. So blogs
definitely affects us as consumers.
  Why do so few large companies maintain blogs?

1. Exceptional Boost to Search Engine Optimisation- All of the major search engines are
love fresh, relevant content and blogging is one of the most straightforward and
inexpensive methods for a business to create this.

2. Develop And Strengthen Relationships With Existing And New Customers- Blogging
provides the opportunity for them to connect with their existing and potential
customers in a different, more conversational way.

3. Establish Your Business as an Industry Leader-A good way for the business to build
trust and establish clout in the industry.

4. Connect People to Your Brand-Brand awareness is an immensely important element

of marketing and blog posting will allow them to show their followers a personal side
of the business.

5. Create Opportunities For Sharing- - One of the most powerful benefits of blogging is
the opportunity it creates for others to share the link to your blog.

 Can mala fide blogs create serious problems for companies?

Even destroy them? What action can companies take with regard to such
blogs?

Mala fide blogs are the blogs which are created by other people in intension to
deceive the organization by giving fake reviews and unauthentic data of the
firm to spoil reputation of firm.

Problems due to such blogs:

 Reputation of company is destroyed

 Stock prices get affected
 Emotional setbacks, reputational damage, monetary losses and brand image crisis
 Creates doubts in the mind of the people and manipulates their perceptions
 Impact their customers’ trust
Actions that companies can take to tackle such issue:

 Ensure brands’ ads don’t appear on fake sites

 Ensure brands’ ads don’t appear on fake sites
 Set up alerts for online mentions of the brand
 Respond effectively when a fake news story breaks
 Develop relationships with reputable media channels
 Educate employees, customers and partners
 Exercise 2: Competitive Advantage and Pro Sports

The A-League is the highest-level professional men's soccer league in Australia. The league
is currently contested by eleven teams; ten based in Australia and one based in New Zealand.
A twelfth team, Macarthur FC, based in Sydney, is scheduled to join the league in the 2020–
21 season. It has been officially known since its inception as the Hyundai A-League through
a series of sponsorship arrangements with the Hyundai Motor Company.

Two Teams

Sydney Football Club, commonly known as Sydney FC, is an Australian

professional soccer club based in Sydney, New South Wales. It competes in the country's
premier competition, the A-League, under licence from Football Federation Australia. The
club has won four A-League Championships, three Premierships, one FFA Cup and won the
Oceanian Champions League prior to Australia moving into the Asian Football
Confederation.

Melbourne Victory Football Club is an Australian professional soccer club based

in Melbourne, Victoria. Competing in the country's premier competition, the A-League,
under licence from Football Federation Australia, Victory entered the competition in
the inaugural season as the only Victorian-based club in the newly revamped domestic
Australian league.

 How successful are the two teams you selected? How stable has their
performance been over time?

From above picture we can see that the Sydney FC and Melbourne FC are the top two teams
of A-league. Sydney is far better performing than other teams which won 13 matches out of
15 played in last series.

 An inventory of the characteristics of the two teams.

Sydney FC Melbourne FC

Capability High High

Dribbling skills

Capability Perfect Near Perfect

Passing accuracy

Reputation Intangible Better Lesser than

Sydney
Coaching Tangible Good Good
Fan base Intangible Strong Strong
Players Tangible Good Good

Capability Lesser then Better

Body control
Melbourne

Composure and
Capability Good Good
 mental strength

 Value, Rarity, Imitation and Sustainability

The VRIO framework is a strategic analysis tool designed to help organizations uncover and
protect the resources and capabilities that give them a long-term competitive advantage. The
framework should be put into play after the creation of a vision statement, but before the
strategic planning process.

Like organizations VRIO framework can also be applied for the sports team to plan their
strategies as per their resources and capabilities making effective utilization to gain edge over
competitive teams.

 The combination of different resources and capabilities

Here are various individual skills and team tactics needed to play effective football. The
importance of a skill depends to an extent on the player's position on the field. Overall,
football skills can be divided into three main areas, namely outfield technical, physical,
mental and goalkeeping technical abilities.
Physical skills

 Pace
 Agility
 Stamina
 Power
 Endurance
 Jumping
 Balance
 Strength
Mental skills

 Intelligence (game understanding)

 Vision (ability to see build-up play ahead to others or ability to see a pass or awareness of
players around oneself)
 Composure (ability to control the game at any critical situation in the match and retain a
calm state of mind)
 Leadership (able to guide the youngsters in the field and be able to motivate and inspire
others)
 Communication (can be considered a mental ability)
 Decision-making (determine in advance what to do)
 Positioning (the ability to move to the correct location to take a shot, receive a pass, or
commit a challenge)
Goalkeeping skills

 Jumping (can be considered a physical ability)

 Agility (can be considered a physical ability)
 Balance (can be considered a physical ability)
 Communication (can be considered a mental ability)
 Diving (can be considered a physical ability)
 Goal kicker (can be considered a technical ability)
 Handling (can be considered a technical ability)
 Positioning (the ability to move to the right location to save a shot)
 Reflexes (can be considered a mental ability)
 Distribution (ex. Throwing, punting)

The combination of all this capabilities makes the team best advantage to cope up with
competitions given by other teams in league.
Exercise 3: Does the First Mover Truly Have an Advantage?
 Provide a brief history and description of the industry chosen. Was this a
fast, standard, or slow-cycle market at the time the first mover initiated its
strategic action?

Industry Chosen is Food and Beverages in which I will be particularly analysing

soft drink segment in which Coca-Cola was first player to enter to industry.

SOFT DRINK INDUSTRY, the production, marketing, and distribution of non-

alcoholic, and generally carbonated, flavoured, and sweetened, water-based
beverages. The history of soft drinks in the United States illustrates important
business innovations, such as product development, franchising, and mass
marketing, as well as the evolution of consumer tastes and cultural trends .
In the late 1800s, several brands emerged that were still popular a century later.
Pharmacists experimenting at local soda fountains invented Coca-Cola
in Atlanta, Georgia, in 1886, and Pepsi-Cola in New Bern, North Carolina, in
1893, among others. Reflecting two of the middle-class mores of the period—
temperance and feeling overwhelmed by the pace and burdens of modern life—
early marketing touted these drinks as alternatives to alcohol and/or as stimulants.
Coca-Cola inventor John S. Pemberton's first print advertisement for his creation
read "Delicious! Refreshing! Exhilarating! Invigorating!," while Asa Candler, the
eventual founder of the Coca-Cola Company, promoted his product in the years
leading up to Prohibition as "The Great National Temperance Beverage.

The growth of Coca-Cola was fast-cycle in the market, started in 1886. Under
Candler’s leadership, sales rose from about 9,000 gallons of syrup in 1890 to
370,877 gallons in 1900. Such a huge increase in such small time made this
industry fast cycle to cover market in such rapid pace.

 How has innovation of new products been accomplished traditionally in this

industry: through new firms entering the market or existing firms launching
new offerings?

Although many of these beverages, including beer, wine and tea, have been around
for thousands of years, the industry has developed only over the past few centuries.

The beverage products industry, viewed as an aggregate group, is highly fragmented.

This is evident by the number of manufacturers, methods of packaging, production
processes and final products. The soft drink industry is the exception to the rule, as it
is quite concentrated. Although the beverage industry is fragmented, ongoing
consolidation since the 1970s is changing that. Since the early 1900s beverage
companies have evolved from regional firms that mainly produced goods for local
markets, to today’s corporate giants that make products for international markets.
This shift began when companies in this manufacturing sector adopted mass
production techniques that let them expand. Also during this time period there were
advances in product packaging and processes that greatly increased product shelf life.
 Air-tight containers for tea prevented absorption of moisture, which is the principle
cause of loss of flavour. In addition, the advent of refrigeration equipment enabled
lager beers to be brewed during the summer months.

Soft drinks manufacturers are under increasing pressure to adapt, as rapid social
and lifestyle changes drive consumers away from traditionally popular segments.
In order to counter the growing demand for healthier, more beneficial soft
drinks, as well as the general boredom associated with traditional beverage
options, innovation is key. But while consumers are more willing to experiment
with ‘healthy’ or unusual soft drinks, convincing consumers that they are not
sacrificing flavour for function is a challenging task for brands. So they follow
existing firms launching new offerings stategy to cater market demand of new
product and maintain high sales.

 Identify one or two first movers and provide a review of what happened
when they entered that industry. Describe why the product or offering has
been successful or why it failed.

Coca-Cola was the first player to enter into the soft drinks industry and are still successful to
be market leader of the industry with around 50% of the market share. Coca-Cola has long
been one of the world’s most valuable brands. And it’s no accident, but the result of decades
of quality work not only on the business side, but especially in marketing. Naturally, this also
affects investments – in 2015, investments totalled 4 billion dollars. Whether or not you enjoy
this beverage, you must admit that world-class marketing is what makes Coca-Cola the world
leader in creative communication.

The offerings by Coca-Cola is huge success in market because its continuous innovations and
creative marketing strategies which makes it different from competitors.
 What did you learn as a result of this exercise? Do you consider the first
mover a wise strategy; is your answer dependent on industry, timing, or
luck?
1. The first to enter a market can obtain a massive advantage such as
brand name recognition, customer loyalty, market share, etc.
2. The same applies for the first to introduce an innovation. The advantage
is not just because the first company can erect barriers to entry, but also
because competitors and rivals may be put off from committing the
required resources to compete.
3. The main first-mover advantage is control of resources. With this edge
over its competitors, the first-mover can be rewarded with considerable
profit margins and a status of virtual monopoly.
4. First-mover advantage only refers to a significant company that moves
into a market, not just any company.
5. Being a first-mover is only worth it if the risks are outweighed by the
rewards.
6. One of the main advantages is brand name recognition. In the history
of business, companies like Coca-Cola, STP and Kellogg’s brand name
recognition was one of the biggest rewards for being first-movers.

The first mover advantage depends on industry to industry and how

effectively an organization is able to take advantage of first move, its
irrelevant of luck, its all about how good you are in applying strategies for the
company and maintain pace with market needs.
 References

https://www.a-league.com.au/

https://en.wikipedia.org/wiki/Melbourne_Victory_FC

https://lup.lub.lu.se/student-papers/search/publication/1340117

https://blog.technavio.com/blog/top-10-soft-drink-companies-world

hthttps://blog.feedspot.com/corporate_blogs/tps://

www.coca-colacompany.com/

https://www.cbo.me/blog/5-powerful-benefits-of-blogging-for-your-small-business