An Analysis of Competitive Advantage in the UK e Company By submission Introduction OUTSURGE is an e cigarette technology- led global company that was born out of a passion for innovative technology, design and quality products. The company aspires to research and build up an extensive collection of cutting edge goods that confront the standard in industry and assist consumers all over the world achieve more and get satisfaction. The company is currently facing huge competition from large organizations already established in the country. The major competitor being the e SHISHA Company the largely dominates the market share.
E OUTSURGE beginning a small starting enterprise it is experiencing a lot of hindrances to penetration into the market by this the frustrations of barriers of entry by large organizations such as the e SHISHA. With the headquarters in the UK and growing links in various countries the main aim is to be accessible to as many people as possible around the world. To achieving this, the company has to grow its business and reflect positivity to customers, shareholders and society through our products.
Being a customer-centered company, the company is determined to build outstanding products as compared to other products already exciting in the market. This will be achieved through research and using new technological equipments. By making sure synergy among various departments, the company is continuously determined to generate a stupendous portfolio of products for all customers. The demand for telecommunication services has increased rapidly during the last decade, particularly in the areas of mobile phone; with increased competition in the industry companies must identify a strategy to ensure survival in the market as well as the control of the market share.
This global demand is very much triggered by the globalization of business operations across all industries, and the associated with it labor, capital and resource mobility. At national level the increasing demand for information and communication services comes along with changes in life style and living standards of people Literature review How can OUTSARGE an e cigarette company enter into an already saturated market? OBJECTIVES This paper aims at exploring the identifiable advantages that are associated with diversifying production. Benefits realized by an organization implementing competitive advantage strategy.
This proposal will also seek to analyze the competitive advantage in the UK mobile phone industry. Also the paper will seek to know how an e cigarette company can successfully enter into an already saturated market like the example of the UK market which is fully saturated with such business. The principal oblige for growth and development in the mobile phones and the information technology industry is coupled with the rapidity of new technology execution, which diversifies the market potential by introducing new services, and up bringing new capabilities to major players, as well as reducing their costs.
Further factors affecting the antagonism and growth in the industry are de-regulation and privatization, and government efforts to change the monopoly position of the industry. In order to effectively analyze the competitive analysis in the UK mobile industry, we will appreciate the contribution of Michael porter theory of competitive advantage. In 1980 Michael Porter came up with a practical model of rivalry, based on economic principles. Porter′s research on industrial groups uncovered five determinants of long-term industry profitability (Porter, 1985). First is the character of rivalry among competing companies in the industry.
This is brought about by companies trying to secure the market share for the largely produced product or service for a small market. OUTSARGE will look forward to establish means to secure its market share through provision of high quality goods. Secondly is fear of additional entry. If there are substantial barriers to entry, the companies in the industry will do better than if the barriers are weak. The e cigarette market in the UK is largely dominated by huge investments companies like the e SHISHA and thus the companies create a great barrier for small companies entering the market like OUTSURGE. Another factor is the risk of existence of substituting products or services.
If customers have numerous alternatives from which to choose, the industry′s profitability decreases (Rothaermel, 2001b), to be able to survive the harsh competition in the industry e OUTSURGE looks forward to diversifying its products market. The e SHISHA Company offers delivery services that new and small companies entering the market may not be able to offer. The other factors are the bargaining power of suppliers and buyers.
When suppliers are able to alter the price of the firms input by dictating the prices, it becomes difficult for small upcoming companies to penetrate the market, When buyers have the capacity to determine the product prices or even order of extra services, from the producer it becomes difficult for the firm to increase and sustain its profitability expectations. Large establishments like the SHISHA may be in a position to offer these services such as delivery of goods. This is because the company is already stable. In order to gain competitive advantage in its marketing strategies in the mobile phone industry in UK, OUTSURGE must consider undertaking the following steps; Identify the target market and distinguish it by socioeconomic, demographic, and common characteristics or individual needs that make them the potential customers for the product.
Identify other businesses that are going after the same target group. Identify what is different with these companies from our company. Use competitors as learning tools by assessing their business models and imitate their strengths while using their weaknesses to advantage the company.
Gain customers perception about the company’s product knowledge and carry out necessary improvements. In some cases, the company’s ability to manipulate hurdles to enter and compete in its market becomes an effective tool against new competition, further entrenching the business and preserving its profit potential for the foreseeable future (Caves & Porter 1977). Once you’ve gained a competitive advantage, your work is far from complete. Constantly maintain your competitive advantage is essential to achieve the set objectives of the firm. You can maintain your competitive advantage by predicting future trends in your industry, constantly researching and monitoring your competitors, and adapting to your customer’s wants and needs (Barney 1991). Conclusion To achieve competitive advantage and maintain the control of the mobile phone industry OUTSURGE has to put in place SMART marketing strategy.
Diversify the market with the current trend of rise in levels of technology. This will ensure that the company is able to survive in the highly competitive industry. References Barney, J 1991. Firm resources and sustained competitive advantage, Journal of Management, 17(1), 99–120. Caves, R., & Porter, M E 1977.
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