Business Plan Essay Example | Topics and Well Written Essays - 750 words - 1

Business Plan - Essay Example According to Wert (2009), â€Å"carnival’s generic strategy is best described as a blend of low-cost and differentiation.† This is like arguing that the company does not put all its eggs in one basket. Rather, it distributes the available generic strategies prudently to ensure that wider scopes of customer needs are met. By low cost strategy, the company masters in winning the hearts of as many clients with little economic standing as possible. For the high class who would prefer segregated forms of products and services, the company caters for this through the differentiation generic strategy. Scope of Generic Strategy Interestingly, the types of generic strategies identified earlier can be broken further down into whether they are implemented with a broad or narrow focus. Porter explains that the measure of either a broad or narrow focus constitutes the scope of the generic strategy. With reference to the generic strategies blended by Carnival Corporation (which are l ow cost and differentiation), the diagram below may give a representation of the different scopes available to Carnival Corporation. Source: Mind Tools (2012). ... It is not surprising that the current ratio, quick ratio and cash per share are all quoted as low with values of 0.215, 0.154 and 0 respectively (Covestor, 2012). The debt/equity, interest coverage ratio and book value per share are all quoted as average with values of 0.621, 1.17 and 0 respectively (Covestor, 2012). The second way by which the company implements cost leadership is by â€Å"increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs† Mind Tools, 2012). Differentiation involves making your products or services different from and more attractive those of your competitors. With reference to the product differentiation broad generic strategy, the company plays the game more to the implication of the name of strategy where by Carnival Corporation makes their products and services different from competitors in terms of the product quality, packaging appearance and attitude towards work. In t he bid to stand out tall in the industry, the company ensures that it trades not just product but quality service to its customers. This way, the company becomes the preferred destination for customers if the customers know they would even have to pay the same low price somewhere else for the same set of product delivery. Primary Competitors Indeed the Management Study Guide (2012) notes that one crutial area of competive analysis for any company is â€Å"identifying present as well as potential competitors. As far as the cruise ship operation industry is concerned, Carnival Corporation has a number of key competitors. These companies are described as key competitors because they trade in the same kind of business as

How Does Amazon.Com Use Their Digital Essay Example | Topics and Well Written Essays - 2000 words

How Does Amazon.Com Use Their Digital - Essay Example The success of Amazon.com has been highly related to its strategy. Reference should be primarily made to the product to which Amazon.com was initially related: books. After reviewing the selling potentials of this product, Bezos came to the assumption that books had an important advantage compared to other products: they could attract the interest of buyers under the terms that ‘they are appropriately presented through the website’ (Schneider 2011, p.45). Also, due to their size, ‘books are difficult to be held in stock at high numbers’ (Schneider 2011, p.45). Even a quite large bookshop cannot stock more than 200,000 books (Schneider 2011). Being able to offer to customers a high range of choices in regard to the particular product has been a distinctive characteristic of Amazon.com (Schneider 2011). The potentials of Amazon.com to secure a high range of available titles for its customers have highly enhanced the firm’s performance. In other words, t he success of Amazon has been secured by focusing on the type and range of product offered to the public. In addition, the emphasis has been given on the marketing tool used for the promotion of this product to the market. When Amazon.com appeared, the Internet was considered as a quite promising tool of communication. For contemporary management theory, the behavior of organizations is considered as influenced by a variety of factors, related to different scientific fields, such as ‘psychology, economics, and sociology’.... The strategic choices of Bezos have been proved quite effective; within just 8 years the firm managed to achieve a profit of $5 billion (case study). By 2008, the firm’s customers reached the 76 million (case study). The firm’s practice to emphasize on ‘low price, convenience and variety of merchandise’ (case study) has highly contributed in the rapid growth of the organization. 2.2 Evaluation of Amazon’s strategy using the literature The success of Amazon.com has been highly related to its strategy. Reference should be primarily made to the product to which Amazon.com was initially related: books. After reviewing the selling potentials of this product, Bezos, came to the assumption that books had an important advantage compared to other products: they could attract the interest of buyers under the terms that ‘they are appropriately presented through the website’ (Schneider 2011, p.45). Also, due to their size, ‘books are difficult to be held in stock at high numbers’ (Schneider 2011, p.45). Even a quite large bookshop cannot stock more than 200,000 books (Schneider 2011). Being able to offer to customers a high range of choices in regard to the particular product has been a distinctive characteristic of Amazon.com (Schneider 2011). The potentials of Amazon.com to secure a high range of available titles for its customers have highly enhanced the firm’s performance (Schneider 2011). In other words, the success of Amazon has been secured by focusing on the type and range of product offered to the public. In addition, emphasis has been given on the marketing tool used for the promotion of this product to the market. When Amazon.com appeared, Internet was considered as a quite promising tool of communication. The value of Internet for