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based on product strength, service, additional parts availability, and an
excellent seller network.
The third strategy is focus. This strategy is quite different from the
others because it is based on the choice of a narrow competitive scope within
an industry. The focuser selects a segment or group of segments in the industry
and tailors its strategy to serving them to the exclusion of others. By
optimizing its strategy for the target segments, the focuser tries to achieve a
competitive advantage in its targets segments even though it does not possess a
competitive advantage in general.
A firm that engages in each strategy but doesn’t achieve any of them is
“fixed in the middle”. It possesses no competitive advantage. This strategic
position is usually a method for below-average performance. A firm that is
fixed in the middle will compete at a disadvantage because the cost leader,
differentiators, or focusers will be better positioned to compete in any segment.
In most industries, quite a few competitors are fixed in the middle.
7. Answer these questions about the text.
1. Which sentence best expresses the main idea in paragraph one? A firm
can get a competitive advantage by:
a) selling goods in many markets.
b) making as wide a range of goods as possible.
c) producing goods more cheaply than its rivals.
2. Which sentence best expresses the main idea in paragraphs two and
three? When a firm uses a differentiation strategy:
a) it tries to persuade consumers that its products have special qualities.
b) it tries to reach a small group of loyal customers.
c) it wants to attract as many buyers as possible.
3. Which of these sentences best expresses the main idea in paragraph
four? If a firm chooses focus as its strategy, it tries to:
a) do better than its rivals in a small part of the market.
b) prevent other firms from entering the market.
c) do business in a large number of narrow markets.
4. In the final paragraph, does the writer say it is a good or bad thing for
firms to be stuck in the middle? Why?
8. Discuss these questions.
1) Can you think of companies which use one of the strategies in the text?
What about your own company or a company you know well?
2) Can you think of any companies which are fixed in the middle? What
do you think they could do to improve their competitive position?
Reading II: Read the two texts below. Discuss the questions that follow.
The Reds
In 1996, after over 100 years of competition, Pepsi launched “Project
Blue” to challenge Coca-Cola's position as market leader in the soft drinks
PDF created with FinePrint pdfFactory Pro trial version www.pdffactory.com
based on product strength, service, additional parts availability, and an excellent seller network. The third strategy is focus. This strategy is quite different from the others because it is based on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others. By optimizing its strategy for the target segments, the focuser tries to achieve a competitive advantage in its targets segments even though it does not possess a competitive advantage in general. A firm that engages in each strategy but doesn’t achieve any of them is “fixed in the middle”. It possesses no competitive advantage. This strategic position is usually a method for below-average performance. A firm that is fixed in the middle will compete at a disadvantage because the cost leader, differentiators, or focusers will be better positioned to compete in any segment. In most industries, quite a few competitors are fixed in the middle. 7. Answer these questions about the text. 1. Which sentence best expresses the main idea in paragraph one? A firm can get a competitive advantage by: a) selling goods in many markets. b) making as wide a range of goods as possible. c) producing goods more cheaply than its rivals. 2. Which sentence best expresses the main idea in paragraphs two and three? When a firm uses a differentiation strategy: a) it tries to persuade consumers that its products have special qualities. b) it tries to reach a small group of loyal customers. c) it wants to attract as many buyers as possible. 3. Which of these sentences best expresses the main idea in paragraph four? If a firm chooses focus as its strategy, it tries to: a) do better than its rivals in a small part of the market. b) prevent other firms from entering the market. c) do business in a large number of narrow markets. 4. In the final paragraph, does the writer say it is a good or bad thing for firms to be stuck in the middle? Why? 8. Discuss these questions. 1) Can you think of companies which use one of the strategies in the text? What about your own company or a company you know well? 2) Can you think of any companies which are fixed in the middle? What do you think they could do to improve their competitive position? Reading II: Read the two texts below. Discuss the questions that follow. The Reds In 1996, after over 100 years of competition, Pepsi launched “Project Blue” to challenge Coca-Cola's position as market leader in the soft drinks 88 PDF created with FinePrint pdfFactory Pro trial version www.pdffactory.com
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