Ans no.

Porter's Generic Competitive Strategies (ways of

competing)
1. Cost Leadership
In cost leadership, a firm sets out to become the low
cost producer in its industry. The sources of cost
advantage are varied and depend on the structure of
the industry. They may include the pursuit of
economies of scale, proprietary technology,
preferential access to raw materials and other factors.
A low cost producer must find and exploit all sources of
cost advantage. if a firm can achieve and sustain overall
cost leadership, then it will be an above average
performer in its industry, provided it can command
prices at or near the industry average.

2. Differentiation
In a differentiation strategy a firm seeks to be unique in
its industry along some dimensions that are widely
valued by buyers. It selects one or more attributes that
many buyers in an industry perceive as important, and
uniquely positions itself to meet those needs. It is
rewarded for its uniqueness with a premium price.
3. Focus
The generic strategy of focus rests on the choice of a
narrow competitive scope within an industry. The
focuser selects a segment or group of segments in the
industry and tailors its strategy to serving them to the
exclusion of others.
The focus strategy has two variants.
(a) In cost focus a firm seeks a cost advantage in its
target segment, while in (b) differentiation focus a firm
seeks differentiation in its target segment. Both
variants of the focus strategy rest on differences
between a focuser's target segment and other
segments in the industry. The target segments must
either have buyers with unusual needs or else the
production and delivery system that best serves the
target segment must differ from that of other industry
segments. Cost focus exploits differences in cost
behaviour in some segments, while differentiation
focus exploits the special needs of buyers in certain
segments.

For the company I will choose differentiation

strategy because the company is dealing in luxery
brand.
The Advantages of a Product Differentiation Strategy

Separation Creates Value

At the point when an organization utilizes a separation
technique that spotlights on the expense worth of the item
versus other comparative items available, it makes an apparent
worth among purchasers and likely clients. A system that
spotlights on esteem features the expense investment funds or
strength of an item in contrast with different items. The
expense investment funds can spin around the underlying
selling cost of the item, or spotlight on longer-term, life cycle
costs. An energy-saving item, for instance, may set aside
shoppers cash over the long haul, regardless of whether they
pay a smidgen more at the front end.

Non-Price Competition
The item separation technique likewise permits business to
contend in regions other than cost. For instance, a sweets
business might separate its candy from different brands as far
as taste and quality. A vehicle maker might separate its line of
vehicles as a picture enhancer or superficial point of interest
while different organizations center around cost reserve funds.
At the point when Elon Musk sent a Tesla vehicle to Mars, he
made a permanent picture for his image that positively put it
aside from other, Earth-bound vehicles.
You likely can't bear the cost of an advertising plan that
includes sending your item into space, however even a private
companies can prevail in the non-value rivalry region. Spotlight
the separation methodology on the quality and plan of your
items and gain an upper hand in the market without
diminishing their cost.

The Value of Brand Loyalty

A fruitful item separation system makes brand devotion among
clients. The very technique that acquires piece of the pie
through saw quality or cost reserve funds might make
steadfastness from buyers. The organization should keep on
conveying quality or worth to purchasers to keep up with client
steadfastness. In a serious market, when an item doesn't keep
up with quality, clients might go to a contender.
For a broadly showcased item, brands are frequently connected
with famous people as a method for making brand
unwaveringness. In any case, more modest organizations can
utilize this system too, working with locally notable games
figures, TV characters or other more modest market big names
to upgrade the worth of your image.

No Perceived Substitute
An item separation technique that spotlights on the quality and
plan of the item might make the insight that there's essentially
no substitute accessible available. For quite a long time, Apple
made a brilliant showing of persuading purchasers that there
was no feasible option in contrast to their line of PCs,
telephones and music players. In spite of the fact that
contenders might have a comparable item, the separation
procedure centers around the quality or plan contrasts that
different items don't have. The business acquires a benefit on
the lookout, as clients view the item as special.

Types of customers

• Loyal Customers
• Impulse Shoppers
• Bargain Hunters
• Wandering Consumers
• Need-Based Customers

I will target loyal customer as I am dealing in luxery brand and

I have to stick customer.
As I have appointed as a strategic consultant to a international
GERMAN luxery brand philipp plein wanting to enter the
international market with in a year . The luxury clothing brand
offers high end clothing for men, women and children. I would
choose differentiation strategy of porter and my target
audience will be loyal category.
 Ans no. 2
An international MBA University by the name of INSEAD located in
France wishes to enter india to set up a campus. PESTLE analysis for
INSEAD. According to PESTLE analysis company should enter in India.
PESTLE Analysis
PESTLE analysis sometimes referred to as PEST analysis, is a concept in
marketing principles. This concept is used as a tool by organizations to
keep a track of the external factors impacting the organization. PESTLE is a
mnemonic which in its expanded form denotes P for Political, E for
Economic, S for Social, T for Technological, L for Legal, and E for
Environmental. On the basis of the organization, it can be reduced to PEST
or additional areas can be added (such as Ethical).

Factors of PESTLE Analysis

1. Political factors in PESTLE Analysis

Political variables incorporate assessment strategy, ecological guidelines,
exchange limitations and change, levies, and furthermore political strength.
These elements decide the degree to which an administration might impact
an industry or an organization. For instance, the public authority might
bring new expense changes that may change the entire income creating
arrangement of an organization.

2. Economic factors in PESTLE Analysis

Monetary elements incorporate financial development/decrease, premium,
trade, expansion and pay rates, the lowest pay permitted by law, working
hours, joblessness (neighborhood and public), credit accessibility, and
average cost for basic items. These variables are determinants to an
economy's presentation that straightforwardly impacts an organization and
furthermore have reverberating long haul impacts.

3. Social factors in PESTLE Analysis

Social elements incorporate social standards and assumptions, wellbeing
awareness, populace development rates, age conveyance, profession
perspectives, wellbeing, and security. These variables are useful for
organizations to more readily design their promoting examination and
technique. For instance, the Indian market for the most part observers a
flood in requests for vehicles during the last a very long time of the year,
because of marriage and the bubbly season.

4. Technological factors in PESTLE Analysis

Mechanical variables mean the advancements and improvements in
innovations. These variables sway an association's tasks. A few new
advancements like Artificial Intelligence, IoT, Machine Learning, Deep
Learning, are being made in the innovation field and if an organization
neglects to coordinate the pattern it might lose its situation on the lookout.

5. Legal factors in PESTLE Analysis

Lawful variables incorporate changes to enactment affecting business,
admittance to materials, standards, assets, imports/products, and tax
assessment. These elements have both outer and inside sides. Certain
laws affect the business climate in a country.
6. Environmental factors in PESTLE Analysis
These elements are mostly worried about the impact of the general
climate and the impact of biological angles. These incorporate garbage
removal laws, ecological assurance laws, energy utilization guideline.

Conclusion

It can be stated that PESTLE analysis is a great tool for businesses that can
be leveraged for several purposes. It brings information about the possible
impact of the six external factors on an organization. This makes it easier
for organizations to prepare for any sort of problems caused by these
PESTLE factors.

Use PESTEL Analysis

As you've seen before, PESTEL is an abbreviation for the seven
significant outer elements that can influence a business. It implies
the instrument is best helpful when this multitude of seven
elements are basic. Following are the best situations for utilizing
the PESTEL Analysis instrument:
When dispatching your own special business

Indeed, I suppose you can comprehend the reason why this is the
first on the rundown. At whatever point you are beginning a
business, you need to consider the seven powers that make
PESTEL. It is difficult to begin a legitimate business without
observing the predetermined political laws of your purview. On
account of internet business, you really want to keep the
specialized guidelines, three elements, political, legitimate, and
innovative. You most likely can't overlook the rest. Beginning a
business with no thought regarding these powers can cost you
seriously. Then again, in the event that you have an unmistakable
comprehension of these elements in advance, you will have a
high ground.

Reason is PESTEL Analysis an Outstanding Methodology

Many think about PESTEL investigation or essentially PESTEL as
one of the most exceptional systems for business examination.
Zeroing in on the previously mentioned factors gives us lucidity
with respect to the master plan in question and how these
elements can shape the fate of the business;
A very much led PESTEL Analysis assists us with drawing up
nitty gritty arranging in regards to the job of the market in its
specialty

Ans no. 3 a
Turnaround strategies to arrest the decline of revenue and profitability
of my company. I am CEO of a US based automotive major FORD in
india.My company is facing fall in profitability. Strategies I would
suggest for this firstly I have to see phase of strategic management and
then types of strategy and SWOT analysis and successful downsizing
techniques.
The four phases of strategic management are

• formulation,

• implementation,

• evaluation and

• modification.

S.W.O.T. is an acronym that stands for Strengths, Weaknesses,

Opportunities, and Threats. A SWOT analysis is an organized
list of your business’s greatest strengths, weaknesses,
opportunities, and threats.

Strengths and weaknesses are internal to the company (think:

reputation, patents, location). You can change them over time
but not without some work. Opportunities and threats are
external (think: suppliers, competitors, prices)—they are out
there in the market, happening whether you like it or not. You
can’t change them.

Existing businesses can use a SWOT analysis, at any time, to

assess a changing environment and respond proactively. In
fact, I recommend conducting a strategy review meeting at
least once a year that begins with a SWOT analysis.
 New businesses should use a SWOT analysis as a part of their
planning process. There is no “one size fits all” plan for your
business, and thinking about your new business in terms of its
unique “SWOTs” will put you on the right track right away, and
save you from a lot of headaches later on.

The different kinds of strategies are classified into:-

• Competitive Strategy
This is a primary strategy in strategic management that refers to a plan
which amalgamates the clout of the external situation and the combinative
concerns of an organization’s personal status. Deriving a competitive
advantage against competitors in the marketplace is the heart of this
strategy. This strategy aims to create market uniqueness that can lead to a
sustainable competitive advantage. Few examples of competitive
strategies are low-cost strategy, contrast strategy, and market-niche
strategy.

• Corporate Strategy
This encompasses the long term objectives of the organization and
typically influences all the business units of a particular organization. This
strategy is formulated at the top echelons of the senior management in a
diversified company. Corporate strategy particularly focuses on
diversification, horizontal integration, and vertical integration of different
products, business operations, and marketing processes of an organization.
Some examples of Corporate strategy are growth strategy, consolidation
strategy, and global strategy.

• Business Strategy
This type of strategy is formulated at the business-unit level. It
concentrates on increasing the competitive position of the company’s
products and services. Strategic managers use this strategy to devise action
plans and quick adaption to the use of a company’s resources. IIM online
programs in strategic management give rich insights on the business
strategy which includes innovation, product development, integration, and
market development.

• Functional Strategy
This strategy adopts a technique that points to specific functional areas of
a business organization. The core mantra of this strategy is to accomplish
business objectives by maximizing resource productivity. It can also be
termed as a short-term game plan for a vital functional area in a company.
A functional strategy facilitates coordination between objective planning
for specific functions and resource allocation for diverse operations within
the functional domain.

• Operating Strategy
This strategy gives shape to the organization’s operating units. It
incorporates the whole spectrum of decisions which gives form to the long-
term operational capabilities and their contribution to the comprehensive
strategy. Development of core competencies and competitive priorities
with special reference to product and service development form the crux
of operating strategy.

I would suggest to analys all this to arrest the decline in profitability and
decline in revenue.

Ans no. 3 b
In my opinion it would be considered appropriate to Go Alone rather
than pursue with joint venture. As FORD is a good company and it can
grow again by using right strategy. And joint venture has
disadvantages also along with its advantages.
joint venture (JV) is a business entity created by two or more
parties, generally characterized by shared ownership, shared
returns and risks, and shared governance. Companies typically
pursue joint ventures for one of four reasons: to access a new
market, particularly emerging markets; to gain scale efficiencies by
combining assets and operations; to share risk for major
investments or projects; or to access skills and capabilities Work
by Reuer and Leiblein challenged the claim that joint ventures
minimize downside risk.

Advantages of Joint Venture

The most important joint venture advantages which can help
the business to grow faster, increase their productivity and
generate profits. Benefits of joint ventures include:
• Access to new markets and enlarge their audience.

• Increased the capacity

• Sharing of risks and costs on a wide surface basis.

• Access to new knowledge and expertise in business

which includes specialised staffing necessity.

• Access to higher resources, for example the technology

and the finance

• Joint venture partner's help in providing a huge pool of

resources together.
Disadvantages of Joint Venture

Joint ventures can pose significant risks, the disadvantages

are like the follows:

• The communication between partners is not great as

they belong to different societal classes.
• The partners expect different things from the joint
venture, their interest may clash.
• The expertise and investment level may not match well.
• Work and Resources are not distributed equally.
• Different cultures and management styles may create
barriers to the organization.
• The contractual limitations may pose risk to a partner's
core business operations.