Differentiation Strategy
Renting up to three movies
at a time with no time limit
Price Strategy
Reducing the prices
Netflix’s Profit
$6.5 million (in 2003)
→ $49 million(in 2006)
Aggressive Response
Destructive competitive
situation
Differentiation Strategy
New option in online rental
service called ‘Total Access’
Price Strategy
Sti
U.S.Steel Case Study
1. Summarize U.S.Steel’s current competitive situation.
(1) U.S.Steel(USS)는 세계 10위의 integrated steel manufacturer로, Europe’s Ancelor, POSCO와 같은 세계적인 철강회사 및 Weirton Steel등의 미국내의 철강회사와 경쟁관계에 놓여있다고 볼 수 있다. 또한 USS는 새로운 부서 Straightline Source를 신설하여 작은 규모
competition)
The number of eligible provider agencies may be so small or nonexistent that the expected competition among providers does not occur.
Limited capabilities of provider agencies
The managerial competence of provider agencies poses problems for government in POS contracting
Role ambiguities
Clients may be unclear about who is really responsible for service decisions and therefor
competitiveness. There are five different generic strategies that a business can choose.
These include cost leadership, differentiation, focused cost leadership and integrated cost leadership/differentiation. Each generic strategy helps the company to establish and exploit a competitive advantage within a particular competitive scope. By applying these strengths, three generic strategies are
1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
GAP H&M Benetton Inditex
ROIC -0.15% 24.16% 11.20% 27.24%
Return on sales -0.06% 9.60% 7.05% 10.46%
COGS/sales 7