Competitive Strategies Case Study Example | Topics and Well Written Essays - 3250 words

Competitive Strategies - flake Study ExampleStrategy can moderate the link between warlike environment and the close to adopt TC. So, the choice if to adopt TC often depends on firms dodging.The private-enterprise(a) strategy (1) a alliance chooses to pursue identifies the manner with which management intends to compete successfully in its product markets and provide superior regard as to customers (Susman 1992, p. 114). The firms competitive environment affects its capacity to implement a defiinite strategy productively. For example, a low- bell provider strategy works best when price competition among rival firms is especially intense and when the industrys product is standardized. Alternative competitive forces allow a product differentiation strategy to be effective. Examples include diverse needs or uses for the item or service, or relatively few competitors pursuing a similar differentiation surface (Wolburg 2003, p. 340). The firms planned vision is put into action by instrument of different tools, methods, and corporate policies. One such(prenominal) tool that is being adopted by firms all opver the world is the cost management system of TC. As Trebilcock et al. (1990) explain, the link between a firms competitive strategy and use of TC exists primarily because TC provides the style for achieving the firms goals of satisfying market demands at an acceptable level of profitability. A TC system provides a means for managing a companys future profits by integrating strategic variables to simultaneously plan how to satisfy customers, get market share, consecrate profits, and plan and control costs (Kean, 1998, p. 47). Several large international corporations have been determine as TC adopters, including Coca-Cola and Pepsi-Cola however, U.S. companies have been slower to adopt the technique. Reasons for this include TC being not hearty known in Corporate America and the existence of both cultural and organizational barriers to developing a bro ad team-oriented strategy TC requires (Hope & Maeleng, 1998, p. 130). The concept of TC (Genkakikaku in Japanese) originated in Japan at Toyota beat back Corporation in the 1960s. Since that time it has become recognized as a dynamic, comprehensive system for cost reduction and strategic profit homework. TC is not a costing system such as activity-based costing (ABC) or absorption costing. Rather, it is a program aimed at reducing the life-cycle costs of new products, opus ensuring customer requirements of quality and reliability are met. For controlling costs of new products, TC takes place at the design stage of new product development and considers all ideas for cost reduction during the product planning and research and development process (Eckhouse 1999, p. 218). Several researchers (e.g., Covin & Morgan, 1999, p. 47) have noted changes in current frugal and competitive conditions that create a need for a market-oriented cost management system. External powerful factors tha t have take to this need involve a growing number of competitors, high standards of competitors, globalization in the present economic situation, aggressive price competition, and shorter product life cycles. Coupled with a high rate of technology spreading and innovation, these factors indicate the market must accept new products at a price that will generate an acceptable rate of return to the company. Thus, processes must be efficient, effective, and optimized to produce the