Business Strategies Recommendation

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BUSINESS-LEVEL STRATEGY RECOMMENDATION

Competitive Strategies
Within a competitive industry, the strategic advantage that one business entity has over its

competitors. Having a competitive advantage strengthens and positions a company better in the

marketplace.

Cost Leadership Strategies


It allows cost producers within a mass; cost leadership is often influenced by its

efficiency, scale, scope, and cumulative experiences. The Cost Leadership Strategy aims to take

advantage of economies of scale, well-defined scope, and other factors. A good purchasing

strategy, for example, produces highly standardized products using high technology. Price

leadership is not the same as cost leadership. Companies that can achieve economies of scale in

production and marketing usually benefit from this.

Ayala Land Inc.'s primary goal in implementing this strategy is to maintain market

leadership through effective value chain management. This strategy enables Ayala Land Inc. to

increase its market share by focusing on the middle class, which accounts for most of the total

customer market mix in most countries. The price aspect is typically especially important to

middle-class customers, and cost leadership is the best strategy for meeting their needs. Ayala

Land Inc. often provides discounts and coupons to meet revenue goals and deal with pricing

pressure from its closest competitor, in addition to charging low prices by lowering

manufacturing costs and optimizing supply chain productivity. These discount and promotional

activities are intended to raise brand awareness and promote use.

Many advantages of Ayala Land Inc.'s cost leadership strategy have been discussed,

including gaining rapid market awareness, expanding the consumer base, promoting

consumption, and achieving sales goals by emphasizing product affordability and accessibility.
While Ayala Land Inc.'s competitive advantage strategies emphasize cost leadership as the

primary strategy, the organization also employs a differentiation strategy in tandem with cost

leadership to establish a foundation for long-term competitive advantage in the highly

competitive global consumer market.

Differentiation Strategies
A method by which a company aims to create and market unique products for various

customer segments. When a company offers something unique that the customer perceives to be

better or different from other products, it is differentiated. By differentiating your company from

your rivals while still providing what your customers want, a differentiation strategy will help

you to achieve a competitive advantage. This technique aims to set you apart from your

competitors. The strategy's goal is for the company to become special in the eyes of its

customers. Differentiating a company's product or service entails making something that is

regarded as unique in the industry. Design or brand picture, technology, product function,

customer support, dealer network, and so on are all examples of differentiation. In an ideal

world, the company stands out in various ways that matter to the consumer. While costs are not

the primary strategic goal, differentiation does not imply that the firm can disregard them. Since

distinction also necessitates a perception of exclusivity, it can preclude obtaining a large market

share. If the activities needed to create it are potentially expensive, such as comprehensive

testing, achieving differentiation implies a trade-off with a cost position.

Ayala Land Inc will increase its customer base and emphasize unique product features

using differentiation as a strategic strategy. The strategic goal of ALI's use of this strategy is to

differentiate by embedding innovation and addressing the growing health issues of customers.

For example, to distinguish itself from competitors and widen the reach of opportunities within
the industry, ALI has expanded its product line after studying evolving customer interests. Ayala

Land Inc. has built a large and loyal customer base by combining differentiation and cost

leadership. ALI uses a competitive differentiation strategy to place its product offerings to stand

out and are distinct from the competition. The business uses distinction to reduce the pressure

from other brands since it is an established brand with a strong footprint. To set Ayala Land Inc.

apart from other brands, it invests heavily in marketing, advertising, and celebrity endorsement.

Extensive experience, the oldest brand, and a global footprint are some of the differentiating

factors that the company's marketing and communication strategies highlight.

Moreover, the company provides a wide range of flavors to meet the diverse tastes of

customers. It employs innovation as a tool to provide consumers with differentiated augmented

services that may delight them and increase their preference for ALI over competing brands.

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