For profitable business growth, execution of basic strategies is the key to achieving given organizational goals, visions, and mission. The most substantial aspect entails determining the best strategies to execute for a great performance. Among the generic strategies that have recorded a great business growth in the organizations include customer-oriented strategies, cost versus differentiation approach, an internal-driven process, and competitor driven strategy. Although the strategies have facilitated a significant growth, competitor driven strategy has been very effective in markets where the product offered is similar in price and benefits with reference to the products offered by competitors (Goddard & Eccles, 2013). This has been the case considering Eastman Kodak, a global commercial and imaging company with technologies in materials science, digital imaging science and software, and deposition processes. Kodak’s market has been characterized by competition from different firms including FujiFilm, CollegeHumor, Hewlett-Packard and Agfa-Gevaert. These firms have been offering products with similar prices and benefits as the products offered by Kodak. Consequently, this aspect has given a chance to the execution of the competitive driven strategy following its numerous benefits into the respective organization.
Competitor oriented strategy mainly focuses on how well an organization is capable of capturing a significant market share from the competition (Tracy, 2015). In any given market, customers are unlikely to have a preference between brands. However, depending on an organization’s ability to capture the market share, there is a great chance of attracting the preference of customers towards a given firm’s brand. The competitor-driven strategy not only focus on the preference of the customers but also considers the stakeholders involved in the value chain. Kodak’s competitors have been concentrating on a customer-driven strategy which has resulted in a great bunch of loyal customers. It is, however, imperative to note that the significance of competitor-oriented strategy is the ability to develop a customer base for a brand regardless of the customer loyalty presented to the customers ( Simerson, 2011 ).
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The reason for selecting a competitor driven strategy for Kodak is the competitive advantage behind the firm’s name. Kodak has established a great brand name that holds the strength of the firm. Moreover, the firm has a strong financial base and a technology in-depth, which increases its competitive advantage. Moreover, the firm has ventured into other industries including healthcare and IT sectors, thus promoting the customer base for its products. Following the strengths characterizing the firm’s performance, it is capable of outperforming other firms in the same industry. Moreover, the competition in the market of the product has few competitors who focus on branding and loyalty. This aspect will, therefore, present a significant approach to building effective business growth through the execution of the competitor driven strategy ( Russell, 2006 ).
Significantly, competitor driven strategy focuses on various aspects including branding and customer loyalty. Eastman Kodak has numerous benefits that would ensure the effective execution of the competitor oriented strategy. First, since the conception of Kodak, it has been a public figure following its ability to outperform its competitors. Moreover, the firm has built a strong brand following its venture into different sectors including the health sector and IT industry. However, despite the strengths of the company, its competitors have similar strengths but the only distinguishing factor is the strategy executed for other companies. Most of them employ a customer-oriented strategy that improves their loyalty of the customers and facilitate profitable growth (Tracy, 2015).
Upon integration of the competitor-oriented strategy in the company strategies, the strategy will facilitate the achievement of the organization’s values, mission, and visions due to the following motivating factors. The competitor driven strategy will help the company reassess its strengths and weaknesses relative to its competitors ( In Wilkinson & In Kannan, 2013 ). As identified in the context, Kodak’s competitors produce similar products and services as it does. Therefore, upon conducting a performance evaluation, the strategy will help in identifying different aspects including product efficiency, delivery times, pricing, customer satisfaction and the market share occupied in the market. The performance of the organization is good but through the competitor driven strategy, the organization will become competitive hence outperform its competitors (Goddard & Eccles, 2013).
The competitor driven strategy will help the company identify its market position. Consequently, upon identification of the market position, the firm will consider its visions and missions and in return strive for a higher position in the market hence facilitating the achievement of its objectives. Furthermore, the strategy will motivate the company to develop the most compelling brands and images that will capture the customers’ loyalty and establish a firm customer base for its products. Competitor driven strategy pushes a firm to develop a competitive orientation, which significantly improves the performance of the firm ( Hill & Jones, 2013 ). Although other strategies are relevant for the growth of a given organization, competitor driven strategy is unique. In contrary, the strategy is motivated by improving the company’s brand and establishing a firm customer base through attracting their loyalty by the products and services offered to them.
Furthermore, the competitor driven strategy fits the company since its competitors are aiming at accessing the same advantages. Consequently, the strategy provides an alternative approach that has extra benefits more than the profit obtained from the market. For instance, Eastman Kodak faces stiff competition from FujiFilm who are presenting similar products and imaging services as Kodak does. The significance of the competitor-oriented strategy is that it will help Kodak determine the characteristic of its competitors in the market and in return will employ the necessary strategies for a competitive market. The current situation in the market cannot be avoided since the competition is high as the firms are attempting to access the same advantages. Among the objectives defined by Kodak include being the leading company and have the best brand image for its products and services. This achievement has been relatively made since it is currently among the best-performing companies in its industry. However, the competitor driven strategy will help in the achievement of the mission, vision and the objectives laid by the organization.
Additionally, competitor driven strategy will improve the company’s strategic thinking through conducting in-depth research on the market trends and defining the characteristics of their competitors ( Kachru, 2006 ). As a result, the firm will develop more strategies that will be effective in creating a competitive environment. Moreover, the strategy will create a well-established and healthy business environment that will attract more competitive strategies. Consequently, the company will be able to defend itself against competition hence maintain a great focus on its mission, vision and the set objectives.
In order to formulate a competitor driven strategy, the company will be required to evaluate the following factors in the market. To begin with, the company will be required to identify the competitors from whom it will obtain the market share. This will require consideration of other factors necessary for strengthening its position over the existing competitors. In the recent past, Kodak has been executing the customer-oriented strategy. In return, it has recorded great profits and huge revenue characterized by a good public image. However, the company has not been interested in being competitive in the market. Therefore, upon integrating the competitor driven strategy, the strategy will induce a great interest in the competitive orientation of the company. A competitive environment has numerous advantages including improvement in the product quality, improved customer services and increased size of market share (Amankwah, 2015). Moreover, the company will be aware of trends in the market by identifying the trends of other competitive firms.
Execution of competitor driven strategy mainly focuses on stakeholders of the company. This is because, in order to establish a competitive environment, the firm will concentrate on establishing a strong supply chain and strengthen each element of the products channels in the market. Unlike the customer-oriented strategy that is mostly employed by the firm, which concentrates on winning customers loyalty. Therefore, competitor driven strategy is substantial since analyzes the entire market and identifies the weaknesses that can be turned into strengths and achieve a higher market position. The most significant aspect of this approach is its ability to develop a robust strategy that effectively beats the existing competition in the market achieving the set objectives on presenting the best brand in the market (Johannessen & Skålsvik, 2013)
Towards the visions and mission of the firm, the strategy will improve the competitor and customer analysis in order to improve the overall performance towards creating a competitive environment. As a result, the firm will improve the focus on its products and services motivated by the competitive aspect of attaining a significant market share. Kodak has been increasing the variety of its products by supplying health equipment such as x-rays and other health-related machines. This has been an approach to increase the market share by introducing new products in the market. However, its competitors have also employed similar strategies. In order to outperform its competitors, the firm will need a great focus towards improving its relations with the stakeholders and define various approaches that will improve its competitive capabilities in the market (Goddard & Eccles, 2013). The strategy will distinguish Kodak from its competitors, an aspect which will contribute towards improving products and services prices, create a strong brand for the products and attract more customers to the company. In addition, the strategy will help in strengthening brand loyalty, which is among the main goals defined by Kodak.
Eastman Kodak is among the companies that have been unable to compete successfully in the current markets characterized by stiff competition. Although the companies have been making huge profits and earn more revenue, the competition has been considerably low. However, through executing the competitor driven strategy, the mind of the organization will focus on executing competitive strategies that will result in great market positions in the existing market (Amankwah, 2015). This strategy is one of the approaches necessary for controlling the company’s business environment, resources, and corporate culture. In a business perspective, this approach is the key to profitability and great success in the market.
Additionally, competitor oriented strategy will play a significant role in fastening adaptability of the company to dynamic market trends (Tracy, 2015). Upon the establishment of a competitive environment, the strategy will be considerate of the customers’ behavior, preference and other characteristics necessary for winning their loyalty. This is one of the ways through which the approach aligns its strategy with the customer’s analysis. Customers are among the shareholders who are considered in the supply chain relevant for establishing a competitive environment. In return, upon winning the customer’s loyalty, the firm will be determined to adapt to any change on market influencing its stakeholders. Moreover, the company must develop the ability to cope with the new paradigm in the market in order to maintain competitive power in the market share.
In relation to the adjacency moves, the company will be required to concentrate on its strengths in order to execute the competitor oriented strategy. Concentrating on what the company does well will present a significant platform for the company to focus on its vision and missions as well. Concerning the values, the company must uphold the core values in order to create a quality brand for the product and a good public image to make it more competitive. Unlike other strategies that concentrate on a large pool of profit, the competitor oriented approach will always aim at ensuring a firm is at the top of a competitive market. This is through executing strategies that focus on the stakeholders and their loyalty towards the company’s brand (Goddard & Eccles, 2013).
Among the generic strategies facilitating the growth of a business, competitor oriented strategy records a substantial effect upon execution into the organization. Through creating a competitive environment, the strategy facilitates the improvement of the company’s public image. This is enhanced through the focus on stakeholders who include the members of the public as the customers and members of the supply chain. Moreover, the approach is necessary for achieving the company’s mission and vision by integrating other strategies necessary for the growth of the company. The competitive environment resulting from the execution of the strategy identified improves customer’s brand loyalty and improves their preference towards the company’s products and services (Malekpour et al., 2016).
In reality, customers tend to be attracted to the leading companies in the market. Therefore, through executing competitor driven strategies in the firm, the company is assured of improved customer’s preference on their goods and services. In general, other generic strategies facilitate the growth of a business. However, only a competitor oriented strategy focuses on creating a competitive environment. In return, this strategy facilitates the attainment of the firm’s vision and mission on becoming the leading firm in the market. Currently, most companies are successful but not competitive. This has been the scenario affecting Kodak. Therefore, through the implementation of the competitor-oriented strategy, the firm will be assured of a significant market share and improved brand loyalty from its stakeholders.
References
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Goddard, J., & Eccles, T. (2013). Why some Companies Consistently Outperform Their Rivals. Business Strategy Review , 24 (4), 7. https://doi-org.proxy1.ncu.edu/10.1111/j.1467-8616.2013.00984.x
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Johannessen, J. and Skålsvik, H. (2013), "The systemic leaders: new leaders in the global economy", Kybernetes , Vol. 42 No. 1, pp. 13-34.
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Russell, J. (2006). Strategic Planning 101 . Alexandria: American Society for Training & Development.
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Tracy, B. (2015). Business strategy (the brian tracy success library) . Retrieved from https://ebookcentral.proquest.com (chapter11)
