Question

In today’s economy, it is no longer secure to assume that an organization which is highly successful now will continue to be successful in the future. In addition to all the uncertainties that exist today, managers rarely have the luxury of full information. This is the situation experienced by Mr. Kamil in his business.
Mr. Kamil owns a retail store selling sports and outdoor clothing from an American manufacturer. Recently, a large departmental store opened a section selling similar sports
and outdoor clothing for much lower prices that are manufactured in China and Thailand.
Mr. Kamil believes that he is starting to lose business to this new situation.

You are in a team for a management class project and your research topic is “How can I apply competitive strategies to handle this strategic planning challenge better according to Mr. Kamil current situation”

Answer 1

Since Mr. Kamil cannot compete with music cheaper clothing products from China and Thailand then he must apply competitive strategy in order to remain in the competition. He cannot use the cost focus strategy then he must use a competitive differentiation strategy.

Competitive differentiation refers to the strategic tactics that an organization can use to set tier products brands and services apart from its competitors.

In a competitive differentiation strategy, Mr. Kamil can promote or advertise his products as made in USA products which would give consumers a sense of belonging to their country and as they are supporting the local manufacturers and industry over Chinese products.

The clothing line should focus on the patriotic theme. He can also start 'support local industry' campaign with his products.