Question: Comment on this post: I believe that Apple, Rogers, Amazon and Loblaws's Space Matrix's Stability Position and competitive position would be as follows, ranging from
Comment on this post:
I believe that Apple, Rogers, Amazon and Loblaws's Space Matrix's Stability Position and competitive position would be as follows, ranging from -1 as the best to -7 as the worst:
Apple
Apple has a strong stability position with an average of -2.6 considering factors such as:
- Technological changes: -2
- demand of variability: -3
- competitive pressure: -2.1
- price range of competing products: -3.4
Apple continuously responds to technological changes, they are constantly looking and improving their products based on the market's want and thus, this continuous product change increases the demand of Apple's product variability.
Apple provide different products (Smart phones, Laptops, watches and much more) of higher prices products compared to its main competitor (Samsung), however, they both have a distinctive competitive advantage that differentiates both of them and therefore, it doesn't make a great competitive pressure on the company.
Additionally, Apple also have a strong Competitive position with an average of -1.9 Considering factors such as:
- Market share: -2.2
- Product quality: -2.5
- Customer loyalty: -1
Apple is currently one of the best Smartphone Vendors in the world, it claimed 23% share of the market in 2021 followed by Samsung in the second place. (S O'Dea. Feb 10, 2021). Apple's products quality is considered on of the best in terms of functionality, ease of use and its tight integration between devices and thus it increases customer loyalty.
Rogers
Rogers Communication has an average stability position of - 5 considering the following factors:
- Price Elasticity of Demand: -6
- Competitive Pressure: -6
- Technological Changes: -3
Rogers low average stability position is mainly affected by a high competitive pressure in the industry in which customers are provided with a number of substitute products and services that increases the price elasticity of demand and thus it is easy for customers to deal with other telecommunication companies that provide better prices/deals. On the other hand, Rogers continuously responds to technological changes and try to improve their products and services based on the market's wants.
Additionally, Rogers Competitive position is on an average of - 4.6 considering the following factors:
- Market share: -4
- Product quality: -4
- Customer loyalty: -6
Rogers competitive position is affected by the difficulty of achieving customer loyalty due to the number of competitors in the market, this has also affected the company's market share in which it has declined in 2019. Moreover, based on customers reviews, Roger's product and service quality has declined over the past few years and thus, it affected the company's relationship with its customers.
Amazon
Amazon is an e-commerce company with a high stability position with an average of - 1.76 considering the factors below:
- Technological change: -1
- Competitive pressure: -2.3
- Barriers of Entry: -2
The most important factor that affects Amazon stability position is that the e-commerce industry and companies such as amazon still have low competitive pressure due to having a number of barriers for new companies to enter the market. Amazon continuously responds to technological changes by updating their website, products, services and delivery methods based on the current technological improvements. Moreover, Amazon have a competitive advantage having affordable prices, good product quality that can be delivered in a short period of time.
Additionally, Amazon competitive position is on an average of - 2.2 considering the following:
- Market share: -1.2
- Customer Loyalty: -1.5
- Product quality: -3
- Control over suppliers and distributers: -2.1
Amazon's market share has increased by 2% from 2019 to 2020. Amazon is an e-commerce company that provides a variety of products from third-party sellers that are usually small to medium size firms. Also, Amazon buys some products directly from manufacturers and sells them directly on their websites. The quality of Amazon products can differ from one product to the other. However, the ability of reading and writing feedback about customer's purchases has increased Amazon's customer loyalty
Loblaws
In my opinion, Loblaws has an average stability position of - 4.7 depending on the following factors:
- Rate of Inflation: -6.2
- Competitive pressure: -5
- Technological changes: -3
- Price Elasticity of Demand: -6.1
As a grocery market, Loblaws is highly affected by inflation rates in Canada, resulting in increasing products' prices. Grocery market is an industry of high competition, customers tend to shop and look for cheaper prices and better deals and thus, prices are highly affected by consumers' demand.
Additionally, Loblaws has an average competitive position of - 3.5 considering the following:
- Market share: -2.3
- Customer loyalty: -5.3
- Product quality: -3
Loblaws is considered the market leader among Canadian food retailers having 37% of market share in 2020 as a result of selling high quality grocery products with affordable prices. On the other hand, since grocery market is an industry of high competition, Loblaws face many risks of other competitors such as Walmart and Costco that can provide better deals, memberships and better prices and thus, affect Loblaws customers loyalty.
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