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Business level startegy

Ans is high innovation my doubt is.....high innovation lead to product diffecition ...then it is barrier to entry....so my point of view and is d ...this is right ?

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Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

03-Feb-20

166

Answers (25)

if the existing firms captured all the distribution channels and suppliers......and with a lot of experience they gained over the years.... it is difficult for the new firms to enter into the market But if you have high innovation which no other firm in the industry has.... definitely you can enter into the market Suppose if you developed a highly innovated car engine which gives more mileage than any other car in the industry then you can easily enter into the market so it is not a barrier of entry on the other hand if you are offering the same type of car which other firms in the industry are offering.....it will be difficult for you to enter the market because all the distribution channels and suppliers are captured by the existing firms


jsome jsome

jsome jsome

CA Inter

575

03-Feb-20

TQ.....you are a ca ....sir or.student


Thread Starter

Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

03-Feb-20

In sm 2nd question.... Infant care ...that question...ans is different iation strategy...but my ans is focussed differentiation strategy because it focused only on child...but y ans is different iation strategy

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Thread Starter

Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

03-Feb-20

infants need different type of things like diapers clothes etc You can get diapers from medical shops but not clothes and toys You can get clothes from clothes shop but not diapers and toys You can get baby furniture from furniture shop but not toys and clothes Here infant care is providing all these things at one place and there by enabling itself differentiated from other firms There is a thin line of difference between differentiation strategy and focused strategy 1.differentiation strategy is about uniqueness 2.focused strategy is about targeting a set of customers in the market i think you had confused between the both Suppose if infant care is offering luxury diapers at a high price then infant care is targeting rich customers in the diapers market.....( focused strategy)


jsome jsome

jsome jsome

CA Inter

575

03-Feb-20

Focused differentiation strategy is a combination of differentiation (uniqueness) and focused(target customers) strategies Rolls royce car is the perfect example of this strategy.....rollys royce provides cars which are unique from other cars and is meant to only certain type of customers (rich customers) if a firm makes only cars then it is not said to be following focused strategy in the same way if a firm makes only bikes then it is not said to be following focused strategy but if a car making firm focuses on economical customers who generally buys entry level cars then it is a focused strategy in the same way if a bike making firm focuses on rich customers who can afford expensive bikes then it is a focused strategy Every thing is to the best of my knowledge if any errors are there please excuse me


jsome jsome

jsome jsome

CA Inter

575

03-Feb-20

High innovation is also a barrier to entry.


Suraj Lakhotia

Suraj Lakhotia

Admin

03-Feb-20

Suraj Lakhotia Admin

High innovation is also a barrier to entry.

Sir....plse explin above question....in fast track also you said different iation startegy...but i think ... That is focussed different iation strtegy


Thread Starter

Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

04-Feb-20

Suraj Lakhotia Admin

High innovation is also a barrier to entry.

indigolearn is an online platform which uses high innovation like animation and analytics in their video lectures for better understanding to students......now please tell me how can this be a barrier to entry......generally this is a massive advantage when compared to other firms right ð?¤?ð?¤?ð?¤?ð?¤?ð?¤?ð?¤?


jsome jsome

jsome jsome

CA Inter

575

04-Feb-20

Thread Starter

Nivetharaman Raman

Ok...this.is also target customer....because they sell thing only for baby....plse sir explin this question

just because they sell things only for baby.....it cannot be a focused strategy..... if there is a biscuit making firm which makes only and only biscuits it is not said to be a focused strategy because they are making only biscuits.....if they had concentrated only on the cream biscuits segment of the biscuit market which are likely to be consumed by children then it is called focused strategy because they are trying to capture the children customers in the business market


jsome jsome

jsome jsome

CA Inter

575

04-Feb-20

Here also only for pregnant mom and mom new born baby ...only consider


Thread Starter

Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

04-Feb-20

i will ask you one question....please answer.....there is a firm which makes clothes only for ladies..... is this a focused strategy because they are focusing only on ladies Please answer


jsome jsome

jsome jsome

CA Inter

575

04-Feb-20

jsome jsome

indigolearn is an online platform which uses high innovation like animation and analytics in their video lectures for better understanding to students......now please tell me how can this be a barrier to entry......generally this is a massive advantage when compared to other firms right ð?¤?ð?¤?ð?¤?ð?¤?ð?¤?ð?¤?

Because it's an advantage, it becomes a barrier to entry for other. They can definitely enter but it will be a lot of cost and efforts. A firm which has advanced in innovation will have an advantage and others will find it difficult.


Suraj Lakhotia

Suraj Lakhotia

Admin

05-Feb-20

i had already answered....you are not still coming out of the bubble.....if a firm manufactures clothes only for ladies then it cannot be a focused strategy......but if the firm concentrates only on certain type of lady customers like who prefers clothes made of cotton... then it is focused strategy focused strategy is not about focusing on manufacturing of certain goods only......it is about capturing certain type of customers by matching with their preferences just because infant care produces products only for infants it is not said to be following focused strategy.....if you go by your statement all car companies and mobile making companies are following focused strategy which is not true......because car manufacturing company makes cars only and mobile making company makes mobiles only.....in the car market if the firm wants to concentrate only on entry level customers then it is said to be focusing strategy .......even if infant care want to concentrate on making diapers only from cotton for eco friendly customers then it is said to be following focused strategy


jsome jsome

jsome jsome

CA Inter

575

06-Feb-20

But sir. Said first cry it is focused strategy ...


Thread Starter

Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

06-Feb-20

What first cry i didn't understand


jsome jsome

jsome jsome

CA Inter

575

06-Feb-20

In first cry app and store ...sold only for child items


Thread Starter

Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

06-Feb-20

even i am confused now....i don't know whether my opinion is right or wrong


jsome jsome

jsome jsome

CA Inter

575

06-Feb-20

i am sorry.....my explanation is wrong.....don't consider it....


jsome jsome

jsome jsome

CA Inter

575

06-Feb-20

Plse telle sir.


Thread Starter

Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

06-Feb-20

jsome jsome

i am sorry.....my explanation is wrong.....don't consider it....

Plse ask sir ...and tell me the ans.for my doubt


Thread Starter

Nivetharaman Raman

Nivetharaman Raman

CA Inter

10K+

06-Feb-20

A focus strategy is to look at a small market segment in a broad market segment. And there are different ways (because management is not an absolute science) to define what a small market is in a large market segment. A lot of examples which you gave are valid ones. To give you a perspective - There are lot of online classes for CA. To choose animated classes can be a focus strategy. In online segment, firstcry sells only kids related stuff. So that's a focus. Its a relative term and cannot be defined absolutely. Till the time the company is targeting a niche segment, it is a focus strategy.


Suraj Lakhotia

Suraj Lakhotia

Admin

07-Feb-20

All the Best
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