1 page ( two separate answers but each one paragraph) due 5pm
QZ 1
Stihl is the world’s leading manufacturer and marketer of chain saws with annual sales exceeding $3.7 billion. With innovations dating to its 1929 invention of the gasoline-powered chain saw, the company holds more than 1,000 patents related to chain saws and outdoor power tools. The company’s chain saws, leaf blowers, and hedge trimmers sell at price points well above competing brands and are sold only by its network of 40,000 independent dealers in more than 160 countries.
How would you characterize Stihl’s competitive strategy? Should it be classified as a low-cost provider strategy? a differentiation strategy? a best-cost strategy? Also, has the company chosen to focus on a narrow piece of the market or does it appear to pursue a broad market approach? Explain your answer.
QZ 2
Best Buy is the largest consumer electronics retailer in the United States with 2013 sales of almost $50 billion. The company competes aggressively on price with rivals such as Costco Wholesale, Sam’s Club, Walmart, and Target, but is also known by consumers for its first-rate customer service. Best Buy customers have commented that the retailer’s sales staff is exceptionally knowledgeable about products and can direct the customer to the exact location of difficult to find items. Best Buy customers also appreciate that demonstration models of PC monitors, digital media players, and other electronics are fully powered and ready for in-store use. Best Buy’s Geek Squad tech support and installation services are additional customer service features valued by many customers.
How would you characterize Best Buy’s competitive strategy? Should it be classified as a low-cost provider strategy? a differentiation strategy? a best-cost strategy? Explain your answer.
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