Sample HI6006 Competitive Strategy Assignment

HI6006 Competitive Strategy Assignment Sample

Purpose of the assessment - Students are required to explain in report format, with reference to case studies that relate to each of the strategy models of your choice, how at least any two of the following strategy models are applied, i.e. one from each column here:

NB: Use a different case for each. Be sure to base your answer on the models studied in class and quote all academic sources. This is strictly required to be your own original work. Most of the facts you need to apply your 2 models should be drawn from the tutorial cases you choose. You may also introduce some additional case material, correctly referenced, but at least 50% of your content must come from the cases provided in Blackboard Tutorial Materials.

This assignment aims at ensuring that students are knowledgeable and can apply at least two models to two different case studies (select from those in the tutorials) and are able to apply the strategic management process using relevant strategy development models that are applicable to the selected case.

Details

Select any two mini-cases from those in our first 9 weeks of tutorials and select at least two strategy models/theories to apply to the facts of the relevant case. See Tutorial Materials in BB for selected cases. In this report, the use of sub-headings is essential. Be sure to use paragraphing. Be sure to reference your sources in-text and provide a list of references at the end, all.

Solution

Introduction

Competitive strategy is defined as the approach to which the organisation focuses on the use of competitive advantage in the market in order to achieve sustainable growth and enhance their brand value in the international market. For the successful growth of the organisation, it is important for them to focus on the use of competitive advantages and acknowledge the use of different strategies in order to gain success and focus on their successful development of objectives. The following study for assignment help is based on the competitive strategy and it aims to provide an analysis of the two different models that are implemented by different organisations in order to achieve a competitive advantage in the market. Two case studies that are selected for the following study are the case study of Starbucks and case study of TikTok. On the other hand, the study will also provide an analysis of the use of two different models that is Porter’s international diamond model and cross impact analysis of TikTok along with its SWOT analysis.

The first case study that is selected for the following study is based on the Starbucks organisation and use of Porter’s international diamond model. Starbucks is a USA-based coffee house organisation that has its business operations in the international market and is considered to be one of the most famous organisations regarding generation of coffee in the worldwide market. To organisation had more than 33833 stores in 80 countries, and because of this, they are considered to be one of the most profitable organisation in the food and beverage industry. On the other hand, it is a highly revenue generation organisation that has chain of its coffee houses in the international market. Another case study that is selected is of tick-tock organisation and it aims to provide and cross impact analysis of the organisation along with its SWOT analysis. It is a Chinese-based video streaming organisation that provides variety of short form user videos for different genres in order to engage in fun activities. It is a mobile application that can be installed in the android as well as in iOS version.

Strategic issues

Starbucks

The present global economic crisis has forced Starbucks to close several outlets globally. Starbucks also faces competition. There are many coffee shops across the globe, thus standing out is crucial to attract consumers. US rivals include Dunkin Donuts, McDonald's, and Nestle, while UK competitors include Costa Coffee and Caffè Nero. Starbucks must be aware of their rivals' actions. Also, Starbucks coffees are more expensive than rivals since they only buy the finest grade coffee beans, therefore providing competitors a cost edge. Starbucks' lack of a marketing plan also limits company development. They prefer to promote the beverages cup-by-cup to clients. That means less likelihood of attracting lucrative clients.

TikTok

However, with different investigations and considerations in play that threaten to halt the platform in its tracks, and send it to the history books alongside many other short-term blockbusters, it is becoming more impossible to predict what the future holds for the app. However, with global tensions growing, and states seeking for methods to retaliate against economic sanctions and even military intrusions, TikTok has once again found itself in the firing line. The UK Government has prohibited Huawei from creating its 5G network, igniting a fresh trade fight. That led TikTok to rethink its objectives in the country. TikTok apparently has been in talks with the UK government for months about expanding its business there. That TikTok's future is linked to global tensions is not new. For instance, TikTok was recently banned in China owing to border conflicts, and TikTok itself just left Hong Kong due to escalating tensions generated by Chinese meddling in the territory.

First model

Porters International Diamond model of Starbucks

Because certain sectors in a nation are more globally competitive than others, the Diamond Model, established by Michael Porter, explains why some sectors are more globally competitive than others. The Porter's Diamond Model is made up of five distinct components:

• Factor Endowments
• Demand Conditions
• Related and Supporting Industries
• Strategy Structure and Rivalry
• Government and Chance

The models demonstrate that the structure of an organization's home base is crucial to the success of the business in its pursuit of global opportunities. The Porter's Diamond Model, which will be applied to Starbucks, will be used to analyse the company's international competitive advantage in this study (Afonso and Zemsky, 2021, p42(11)).

Factor Endowments

People and economic resources, as well as physical and scientific infrastructure, as well as a plethora of scientific and technological know-how, are all part of nature's gift to mankind. The production of a corporation is influenced by a number of elements. Starbucks' headquarters are in Seattle, Washington, and they employ over 5,000 people. For the corporation, there are six roasting and distribution facilities spread around the United States. Starbucks purchased a Costa Rican coffee farm in 2013 and developed it. Starbucks is well-positioned to address the requirements of its consumers both locally and internationally. Starbucks has also made investments in innovative technology in order to keep its items moving and selling swiftly. It is possible to do anything from keeping track of customers' reward points to making online purchases with the Starbucks mobile application. In 2017, their digital flywheel was responsible for about three-quarters of their total income.

Starbucks made an investment in a digital startup named Easta, which was eventually rebranded as Brightloom, in recent years (Fredrick et al., 2021, p30(7)). Starbucks unveiled its growth strategy in March 2018, focusing on the development of its mobile app and online ordering capabilities, among other things. According to reports, the company is investigating and developing "digital relationships with the customer" as a goal.”

Demand Conditions

Starbucks has 14,300 locations in 2018, an increase from 11,000 locations in 2017. The rise in the number of outlets in the United States suggests that the company is capable of expansion and can compete on a worldwide basis. Starbucks has identified the natural resources that will be used to provide items to its retail locations. Because Starbucks has simplified its customer service, consumers can expect to have their orders completed within three to five minutes when they visit one of its outlets. Starbucks also offers items that are both fresh and of high quality. Coffee is replaced every thirty minutes; there is also a designated time for iced teas, iced coffees, and meals; everything is fresh and not left hanging about for long periods of time (Hakaki et al., 2021, p55(4)).

In addition to the quality of its coffee, Starbucks' most notable feature is its coffee house setting, which enables customers to enjoy their beverage in a comfortable environment. This is something that not all coffee shops provide, which distinguishes Starbucks from the competition.

Related & Supporting Industries

Starbucks depends on obtaining its primary commodity, coffee, from sites all over the globe, rather than from local suppliers. It can process the coffee beans at its six roasting and distribution plants in the United States, but it would have to import the coffee beans from other countries. Starbucks sources its coffee from countries such as Brazil, Columbia, Costa Rica, and Guatemala in the United States. Starbucks has invested $70 million in projects that will benefit coffee farmers throughout the world. This will assure that there will be no violation of the law on the acquisition of coffee beans. Starbucks also has a coffee farm in Costa Rica, which was created in 2013. Starbucks has a coffee plantation in Costa Rica (Keskin et al., 2021, p38(6)).

In addition to manufacturing, technology is another supporting sector that is required for Starbucks' development. Starbucks has already made significant investments in this sector and has established a solid position against other rivals in this market. Starbucks has made an investment in its mobile application, which is important in order to remain competitive.

Strategy Structure and Rivalry

Starbucks has fierce competition from other fast-food and coffee-house franchises, as well as from independent coffee shops. Starbucks has managed to maintain its competitiveness in part by developing new offerings. Starbucks has introduced new latte tastes, and the company is pushing into the food industry (Kishimoto, 2022, p4(3)). Starbucks will need to expand into the food sector in order to compete with other firms in the industry who are now producing coffee items that are equivalent to Starbucks but at a lower price. Competitive businesses in the sector, such as McDonald's and Dunkin Donuts, offer a variety of coffee-related items and foods. During the previous three years, the proportion of food sales has climbed significantly. Starbucks also pays close attention to the desires of its customers.

The firm has transitioned from selling just dairy products to now offering both dairy and nondairy items. Starbucks conducted customer preference research and came to the conclusion that a significant proportion of consumers preferred nondairy items. Starbucks is increasing the number of drive-through locations in suburban regions. The organisation is concentrating on delivering orders to customers as quickly and effectively as possible. Starbucks must deliver quick and efficient service in order to maintain its competitive advantage. Starbucks' competitive advantage is the quality of its service and the high quality of its goods. The firm must think about what the customers in the target market would want before expanding to other parts of the country. Consumers in China and Asia may choose tea items over coffee products, which is advantageous for business growth (Kuznetsova et al., 2021, p27(6)).

Government and Chance

Local groups are now benefiting from tax reductions provided by the government. Since Starbucks has grown to different geographical locations outside of the United States, it has become necessary to take political concerns into consideration. Depending on the outcome of the ongoing political tariff battles with China, Starbucks' earnings in that nation might fall. The political atmosphere of the country has an impact on the earnings of the businesses in the region, as well. Starbucks has established itself as one of the world's finest coffee establishments. After reviewing the firm's history, it seems that the corporation identified a market niche that was underserved and created an atmosphere that allowed the company to develop to the size it is now. Starbucks has conducted market research and has listened to its customers' desires. Starbucks competes with other firms that provide comparable goods, yet the company continues to grow.

It cannot be said that the company's development and expansion have occurred by coincidence, but rather as a result of hard effort and creativity. The firm as it exists now is not the same as it was when it was founded. A company's growth is dependent on its ability to evolve and not stay static (Lin et al., 2021, p27(6)).

Second model

Cross Impact Analysis (CIA, in combination with SWOT) of TikTok

Cross impact analysis of TikTok:

National investigations into TikTok and its potential negative impacts on teenage users' emotional stability have been begun by state attorneys general throughout the country, increasing official scrutiny of the massively popular video-sharing network. The TikTok app has been attacked by politicians and federal authorities in the United States, who point to practices and computer-driven marketing of material that they claim may jeopardise the emotional wellbeing of millennials. Estimates suggest that the network has 1 billion monthly users, and that it is particularly popular with teenagers and younger children. TikTok has said that company aims on providing users with maturity level interactions, emphasising that certain capabilities, such as instant messenger, are not accessible to anyone under 18.

The firm claims that it has put in place measures, such as screen-time management, to assist younger generation and their parents in controlling how long their kids spend on the application and what they view while doing so (Liu et al., 2021, p55(2)). Increasingly popular among consumers and parliamentarians of both political parties, TikTok has come under fire from government agencies as well as consumer activists and politicians from both stakeholders. Republicans have focused their attention on the company's links to China in particular. Byte Dance, located in Beijing, is the company that owns TikTok. The app's detractors refer to incidences around the nation that began to emerge last autumn in which kids destroyed school restrooms and other infrastructure and misappropriated resources all in answer to a widespread TikTok challenge dubbed "devious licks," according to the app's detractors.

Doctors believe that films on Tourette syndrome posted on TikTok might be a contributing cause to adolescent females seeking medical attention for the development of tics, such as spastic movements and vocal eruptions, in the autumn of last year (Pustokhina et al., 2021, p58(6)).

SWOT analysis of TikTok:

Strengths:

TikTok is a smartphone application and online platforms that is designed to be user-friendly. Non-technical people will have no trouble understanding how to run the programme and modify the video. Its UI is really straightforward; all you have to do is scroll up and keep viewing the brief films. As well as the health and confidentiality of its users, TikTok worries about them. It only enables followers to submit a private clear signal they're following, not to any other people. Non-followers, on the other hand, will not be able to send a personalized message. To compensate for this, however, the platform allows for individual customization of the settings. More than two billion people from all around the world have flocked to TikTok because of its user-friendliness feature.

The company has been able to gain new clients via word-of-mouth marketing because to its large user database. In contrast, the vast number of people assures the safety and security of the users on the site. TikTok has created an atmosphere that encourages fun team activities like dancing and comedy (Samples, 2021, p67(11)). The process of capturing this delightful pastime on video brings people closer together. Because of this, it is possible to say that TikTok has introduced a new viewpoint to traditional technological platforms. An estimated 154 nations are now supported by the service, according to TikTok. About 1.1 billion monthly active users are predicted for the video-sharing platform in 2021. Generation Z is anticipated to make about 60% of the users.

Weakness:

Unquestionably, it's an easy application to work with. Some aspects, however, are so technologically complicated that it takes a long time for a novice to learn about them. It may be difficult for a beginner to apply many effects at once, such as filters and substantial delays on the same video. TikTok does not screen some of the offensive audio tracks and background snippets that may be found on the site. Social media opponents claim that the video-sharing site promotes drug use and voyeurism, as well as depicting violent war fantasies (Sun and Lin, 2021, p55(4)).

A big issue is raised regarding the platform's suitability for youngsters as a consequence. Thus, when young people spend hours on the internet watching videos, it encourages them to make their own movies in the extra time they have. Most TikTok users (83 percent, according to estimates) post their videos to the app. Additionally; they may be spending their time and effort into mastering some fundamental abilities. Those that make it to the top of the leaderboard and start making money from the site are few and far between.

Opportunities:

TikTok is an excellent platform for building own personal brand, selling business goods and services, and expanding the business. Many businesses use the services of prominent influencers with millions of followers to advertise their goods and services on social media. Many people's livelihoods are reliant on the platform's availability. TikTok makes it possible to make relationships with individuals who share their interests (Zhang et al., 2021, p20(5)).

Whenever people share their opinions and suggestions, it is possible that something useful will come out of it. TikTok has cultivated a tech-savvy culture among many of its users by requiring them to utilise sophisticated features on a regular basis. Several youthful users have been acquainted with video editing abilities as a result of the video-sharing network YouTube.

Threats:

To put an end to TikTok's reign in the United States, President Trump signed two executive orders to that end that ordered the proceedings to be postponed by the Federal Court. India's government limited access to more than 223 Chinese applications in June 2020 as both nations battled over their shared border, including the popular TikTok app. In October 2020, Pakistani law restricts the use of TikTok, claiming immorality and obscenity as grounds for the prohibition, but 10 days later, it reversed its decision for the same reasons (Durugbo et al., 2021, p32(15)).

Users give TikTok authorization to view their individual data when they register for an account with the site. In addition to having access to billions of personally identifiable information via significant involvement, the Chinese government doesn't disclose confidential through other means. It has the potential to utilise the information for a number of reasons without the users' knowledge or permission (Eymas and Bensebaa, 2021, p49(8)).

Conclusion

From the analysis of the above discussion, it is concluded that Starbucks and TikTok both adopt the use of different competitive strategies in order to ensure a competitive advantage in the market. With the help of Porter’s international diamond model, Starbucks focuses on the use of different activities in order to enhance their business in the international market. On the other hand, TikTok also had to face certain activities and the study had provided SWOT analysis of the organisation. It is concluded that competitive strategy is important for the business.

References