Strategic marketing programm
.The firms operating in this highly competitive environment are always on the move to become successful. To strive in this competitive environment the firms should have an edge over the competitors. To develop competitive advantage, the firms should produce good quality products at minimum costs etc. This means that the firms should provide high quality at low cost so that the customer gets the best value for the product he/she is buying. Therefore, it becomes necessary for the firms to have a strategic edge towards its competitors.
One such competitive strategy is overall cost leadership, which aims at producing and delivering the product or service at a low cost relative to its competitors at the same time maintaining the quality. The cost cutting alternatives are : aggressive construction of efficient scale facilities; vigorous pursuit of cost reduction from experience; tight cost and overhead control; avoidance of marginal customer accounts; cost minimization. To sustain the cost leadership throughout, the firm must he clear about its accomplishment through different elements of the value chain. . Hence, the stability strategy is perceived as a non-growth strategy.
As a matter of fact, stability strategy does provide room for growth, though to a limited extent, in the existing product-market area to achieve current business objectives. Strategic analysis is basically concerned with the structuring of the relationship between a business and its environment. The environment in which business operates has a greater influence on their successes or failures. There is a strong linkage between the changing environment, the strategic response of the business to such changes and the performance. It is therefore important to understand the forces of external environment the way they influence this linkage.
The external environment which is dynamic and changing holds both opportunities and threats for the organizations.. At the same time the changes in the environment affect the attractiveness or risk levels of various investments of the organizations or the investors. A market segment consists of buyers who seek same aspects of a product. And the concept of a market as a set and a segment as a subset is the basis on which the process of segmentation is carried out. But the relationship of a segment to a market is also one of means to goals.
Accomplishing goals can be varied, different segments of a market may demand radically different substitutes ,. The function distinguish a market is a means to some higher-level function that can be served by a variety,. there can be mobility of buyers among the several markets which may result in instability in any individual market. Choice is exercised by people within the context of what is available, the buyers are not necessarily satisfied with what they buy meaning thereby that a possibility always remains of designing an attributes mix better suited to the segment.
Buyers within a segment are more homogeneous in their market wants when compared to those who are in the market at large, but differences will always remain in wants among those within a segment notwithstanding this similarity A marketer can always achieve additional homogeneity by subdividing the original set of segments further until we have segments to which only one buyer belongs. Segments will be distinguishable on the basis of such differences, in other words one will be able to distinguish one segment from another on the basis of what segment members have in common in respect of what they seek from a product.