of generic strategies (overall cost leadership‚ differentiation‚ focus) ➢ Describe each of the strategies ➢ Provide examples of firms that have successfully attained as a means of outperforming competitors in their industry ➢ Address how these strategies help a firm develop a favourable position vis-à-vis the five forces ➢ Pitfalls managers must avoid if to pursue successfully these generic strategies ➢ Conditions under which firms may effectively combine generic strategies to outperform
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CASE: Colgate Max Fresh: Global Brand Roll-Out (HBS 9-508-009) Colgate Max Fresh (CMF)‚ a new toothpaste formula with patented breath-freshening technology‚ had been introduced in the U.S. and was in the global pipeline for 2005. Nigel Burton‚ president of global oral care at Colgate-Palmolive Company (CP)‚ had on his desk the proposed marketing launch plans for CMF in China and Mexico. Each plan sought to maximize business potential in the local market. Burton needed to assess these plans
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The Product Product variety - Colgate Herbal White is part of the range of toothpastes offered by Colgate Palmolive in India‚ which is led by Its flagship brand Colgate Dental Cream (CDC). The brand was launched in 2001 and is essentially targeted at traditional consumers who seek natural ingredients (such as in semi-urban and rural towns) Quality – Being a popular segment product and an offering by Colgate-Palmolive quality parameters are thoroughly tested to ensure consumer satisfaction.
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Discuss the concepts of limit and predatory pricing. Explain how imperfect knowledge of other firms’ costs or financial conditions can lead to limit or predatory pricing. Limit pricing is when an incumbent firm sets a “low price with the purpose of deterring entry”. Predatory pricing is when an incumbent sets an “‘irrationally’ low price [possibly below cost] so other firms can’t compete” forcing existing firms to exit the market. Both pricing strategies require at least two periods: the first to
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AUM SRI SAI RAM EDLP vs. PROMOTIONAL SALES edlp: * Every Day Low Pricing (EDLP) is one of the pricing strategies deployed by the retailers in providing low prices for their customers every single day when they purchase products from their stores. * This concept was introduced by Samuel Moore Walton (Walton)‚ proprietor Wal-mart Stores in order to attract his rural customers. He promised high quality‚ branded and unbranded products at lowest possible price‚ offering better value for his
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ARBITRAGE PRICING THEORY ( APT ) Originally developed by Stephen A. Ross. The CAPM predicts that security rates of return will be linearly related to a single common factor : ----- the rate of return on the market portfolio. The APT is based on a similar approach but assumes the rate of return on a security to be sensitive to a number of factors. Market equilibrium is driven by individuals eliminating arbitrage
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The price variable relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices. Setting price objectives is critical because they form a foundation on which the decisions of subsequent stages are based. Objectives for Red bull include organisational and marketing objectives such as profit‚ return on investment‚ growth and status quo. Assessing the target market’s evaluation of price tells the marketer how much emphasis
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DATE: January 9‚ 2010 RE: Calgate Max Fresh: Roll out Brand Summary: In February 2005‚ Nigel Burton‚ in his third year as president of global oral care at Colgate- Palmolive Company (CP)‚ had every reason to feel optimistic. Worldwide market shares were strong and Colgate Max Fresh (CMF)‚ a new tooth paste that had helped drive Colgate to a record 34.8% value share in the important US market‚ was in the global pipeline for 2005. Burton had on his desk the proposed marketing launch plan for CMF
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Category in focus “Iphone 5S” Well it finally happened. The Iphone 5S has arrived and People have been catapulted into the future of mobile technology. A year behind most other countries‚ but catapulted none the less Some fast facts about this category are discussed below Size One Apple product‚ something that even did not existed few years ago‚ has higher sales than everything Microsoft has to offer. In the quarter ended March 31
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I. Who should take the blame for getting Standard Machines Corp into the crisis it faces vis-à-vis closing on a major sale with an established account? The blame for Standard Machine Corp can be directed in one of three ways: Industry: One could argue that innovation in the machine tool equipment industry has been stagnant and resulting caused customers to view machines as commodities and compete on price. Another thought is that the industry allowed a low cost player to enter and therefore
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