Discuss the direct and indirect competition, and differentiation strategies of vending machines business. Competition (referring to a
Fantastic news! We've Found the answer you've been seeking!
Question:
Discuss the direct and indirect competition, and differentiation strategies of vending machines business.
Transcribed Image Text:
Competition (referring to a coffee shop as a business idea) • Indirect Competition Need to be aware of any/all goods and services that your client may choose to spend money on. For consumers on tight budgets, buying a cup of coffee may be a luxury that they avoid during "tight weeks or a luxury they choose to avoid in order to control spending. To understand Indirect Competition, you need to think about the ways that your clients use their money and where your product/service fits among their needs/wants. • Direct Competition This is the more obvious discussion point... is there a Starbucks across the street? Here again, you have to think beyond your initial scope of "coffee shop. Depending on your Differentiation, you may be competing with breakfast and fast food restaurants, bars, music clubs, art galleries, etc. While some of these are "indirect to the coffee shop, they are "direct" to your differentiation. This will come into play again next week as we discuss Value Propositions and Customer Segments. Differentiation S Add Value - It is not enough to be different, your differentiation must add value for your clients. It's easy to be different... "I will sell elephant themed pajamas at my coffee shop. We are absolutely the only coffee shop within 200 miles that offers these kinds of products. Given the popularity of elephants. clients will love our fluffy pants and our fresh brewed coffee!" I am certain you can find all kinds of data about how many people love elephants and how many people drink coffee, but it doesn't mean that your differentiation has added value to a client base that will support you. On top of that, if your pajamas sell really well, the coffee shop down the street can simply add pajamas to their menu.. eliminating your differentiation. Sustainable-The pajama example above is not sustainable. If your competition can easily copy or outperform you on your differentiation strategy, you don't actually have a differentiation strategy. There are few things that a competitor can't try to mimic, so you will not be able to stop them from trying. Just make sure you're better at it and have built some level of brand loyalty to ensure your clients will keep coming back. Competition (referring to a coffee shop as a business idea) • Indirect Competition Need to be aware of any/all goods and services that your client may choose to spend money on. For consumers on tight budgets, buying a cup of coffee may be a luxury that they avoid during "tight weeks or a luxury they choose to avoid in order to control spending. To understand Indirect Competition, you need to think about the ways that your clients use their money and where your product/service fits among their needs/wants. • Direct Competition This is the more obvious discussion point... is there a Starbucks across the street? Here again, you have to think beyond your initial scope of "coffee shop. Depending on your Differentiation, you may be competing with breakfast and fast food restaurants, bars, music clubs, art galleries, etc. While some of these are "indirect to the coffee shop, they are "direct" to your differentiation. This will come into play again next week as we discuss Value Propositions and Customer Segments. Differentiation S Add Value - It is not enough to be different, your differentiation must add value for your clients. It's easy to be different... "I will sell elephant themed pajamas at my coffee shop. We are absolutely the only coffee shop within 200 miles that offers these kinds of products. Given the popularity of elephants. clients will love our fluffy pants and our fresh brewed coffee!" I am certain you can find all kinds of data about how many people love elephants and how many people drink coffee, but it doesn't mean that your differentiation has added value to a client base that will support you. On top of that, if your pajamas sell really well, the coffee shop down the street can simply add pajamas to their menu.. eliminating your differentiation. Sustainable-The pajama example above is not sustainable. If your competition can easily copy or outperform you on your differentiation strategy, you don't actually have a differentiation strategy. There are few things that a competitor can't try to mimic, so you will not be able to stop them from trying. Just make sure you're better at it and have built some level of brand loyalty to ensure your clients will keep coming back.
Expert Answer:
Answer rating: 100% (QA)
Direct and Indirect Competition for Vending Machine Business 1 Direct Competition Other Vending Machines The most immediate competitors are other vend... View the full answer
Related Book For
Cornerstones Of Managerial Accounting
ISBN: 9780538473460
4th Edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Posted Date:
Students also viewed these economics questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Under which of the following circumstances would an auditor be most likely to intensify an challenging examination of a $500 imprest petty cash fund a. Reimbursement occurs twice each week. b. The...
-
A U.S. investor obtains British pounds when the pound is worth $1.50 and invests in a one-year money market security that provides a yield of 5 percent (in pounds). At the end of one year, the...
-
The trial balance of Creative Child Care does not balance. The following errors are detected: a. Cash is understated by $1,400. b. A $3,900 debit to Accounts Receivable was posted as a credit. c. A $...
-
Let \(w=e^{\sigma z-\frac{1}{2} t^{2}}\), where \(z\) is a stardard Wiener process. Find the equation governing \(w\).
-
Describe and rationalize how a firms logistics and supply chain strategy will likely evolve as a firm shifts from no international strategy to a global strategy to a transnational strategy. What are...
-
What is Capital Structure and how important it is? What is the basic goal of financial management with regard to capital structure? How is the cost of capital related to capital structure? Question...
-
understand the concept of graphing functions using transformation. step by step written legibly. Sketch the graphs of the following functions by using transformations. a) f(x)=x^3 b) h(x)=(x-2)^3 c)...
-
What is transfer pricing, and how might it affect an organizations ability to achieve vertical integration?
-
How do transaction costs influence the need for vertical integration?
-
What are the main differences between upstream and downstream vertical structures in a manufacturing organization and those in a healthcare organization?
-
What are the benefits and challenges of growing through internal expansion? Acquisition? Networks and alliances?
-
Why do organizations repeatedly use growth as a key strategy?
-
Translate the following into Spanish. 1 Another hour 2 Many jackets 3 Whose watch? 4 Marta's cousin 5 Each truth 6 The students 7 Some shoes 8 Their teacher
-
An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are...
-
Gateway Construction Company, run by Jack Gateway, employs 25 to 30 people as subcontractors for laying gas, water, and sewage pipelines. Most of Gateway's work comes from contracts with city and...
-
Trendy Inc. produces high-end sweaters and jackets in a single factory. The following information was provided for the coming year. ..........................................Sweaters..................
-
During 2012, Young Company had the following transactions: a. Cash dividends of $10,000 were paid. b. Equipment was sold for $4,800. It had an original cost of $18,000 and a book value of $9,000. The...
-
The Sun contains what percentage of the solar systems mass? (a) about 35% (b) 85% (c) the percentage varies over time (d) over 99%
-
Each second, the burning Suns mass (a) increases. (b) remains unchanged. (c) decreases.
-
The nebular theory is based on the observation that the solar system (a) follows patterns indicating that it formed progressively from physical processes. (b) has a structure much like an atom. (c)...
Study smarter with the SolutionInn App