This sample will tell you about the:
- What is Strategy management?
- what is Market Segment?
- Explain Rationale for Choice of design, option and R&D.
INTRODUCTION
Competitive advantage are known as those factors linked with a product which became the basis for the purchase of a company's product over other available options and this is also known as condition which create favourable conditions for a company. This is important that the competitive advantage is managed and strategies for those are properly executed in terms of increasing market share of a company. This report will discuss strategies of Bentley Motors Limited, British manufacturer and market of luxury car and SUV to gain competitive advantage and increase market share.
Mission
“To produce which are for regular and frequent use and along with that providing luxury cars.†On the basis of this mission of the company is willing to design and develop cars of regular use and for those willing to own luxury vehicles and provide same with price moderation and design variation within European car market. Ask for assignment help from our experts!
Objectives
Company wants to secure 5.5% market share in both car market in its initial attempt and keep the closing inventory minimum to 12%.
To increase the supply of new model to 50000 units in coming three years and along with that introduction of new model in coming year;
To achieve a net profit of £1 billion;
To increase capacity to decrease down payment and increase payoff period for the customers to increase customers for the medium cars;
To rebrand and rename company as HighLand to HighLand Automotive in coming year to change its name without changing its identity.
To run two manufacturing facilities at full capacity where wages of workers can be increased by 6% per annum in order to increase their performance potential and reduce the turnover and absenteeism cost of the company.
Market Segment
Segmentation refers to segmentation of the consumers on the basis of clearly identified differences. Segmentation has been done on the basis of demographic, geographic and behavioural characters of the customers. Fromm many years medium cars are dominant part in the market of car (Dibb, 2017). Luxury cars on the other hand has lowest market share but due to thrie premium price companies are able to earn adequate and projected profit. This segmented strategy is very apt for companies which are selling more than one type of products so that they can cater needs to various type of people on the basis of geographic, demographic and behaviours. Medium size cars are dominant in the market and even after their moderate and medium prize they can give adequate profit to the firm because of their sale. In context of age category the customer have been chosen from the age group of 25-40 because at this age both type of customers exist in the market as mostly tend to have family and need space and confort and this is why they are customers for SUV and those who are from families with high purchasing power can buy luxury cars. Considering this facts age group of 25-40 has been chosen and other than this behavioural factors also differ and on those basis people who prefer luxury travel and posh lifestyle will be targeted for luxury cars and other than this those who like simple and comfortable travel will be targeted for medium cars. This will help company to increase their market share as the targeted customers involved various types of customer group.
Competitive Strategy
Competitive strategy refers to strategies which have been designed to gain competitive advantage and to stand out from the competitors. HighLand has many strategies which are successful in attaining competitive advantage (Hamada and Kobashi, 2018). Main strategies of the company are targeting young adults and which has proven successful through 100% sales, reduced down payment on medium car is another strategy of the company and as per this strategy company has managed to attract those who cannot pay big sum of amount in one time so that they can buy the car with small down payment and later pay in form of instalments.
Another strategy which has been employed by the company to attract customers is PCI deal. PCI refers to
Pay a Deposit + monthly payments + options to save, refund and in this deal can even change their car for new model. Such schemes and strategies attract customers and help company to increase their mar
UPTO51%
Avail The Benefit Today!
To View this & another 50000+ free
Update your Number