Strategic Plan Essay
The business environment in the simulation is unique because everybody starts at the same place. Every team or “company” has a product in each of the five market segments with the same market share. For the purposes of this simulation, Chester has chosen a business-level strategy as a differentiator with a high-tech focus. Our team has chosen this strategy to take advantage of the high tech markets and the customers who desire higher performing products. In the rehearsal simulation, our team focused on products in the traditional, high-end, and performance segments. We believe the other companies competing in the simulation are going to choose varying strategies so it …show more content…
II. Business-Level Strategy & Pricing Strategy
As previously stated, Chester’s business-level strategy will be a product differentiator with high-tech focus. Therefore the primary products our company will be focusing on are Cid, Coat, and Cure which compete in the high-end, performance, and size market segments respectively. Our differentiation will be based on providing customers with cutting edge technology that is perceived by our customers as being valuable.
Since our primary focus will be on the high-end, performance, and size segments, minimal focus will be given to the traditional and low-end market segments. Monitoring the environment for new entrants and competing products will be essential as we contend for market share. By offering high quality products with a broad base of loyal customers, we hope to create high entry barriers to new entrants. Monitoring and responding to the price of competing products will diminish the threat of substitute products.
We expect our associated costs to be higher as we are selling high-end products which cost more to manufacture. In response to the high production costs, our