Competitive strategy Essay Example

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According to porter’s model of analysis of competitive advantage, the new market entrance, supplier power, competitive factors, buyer power and product development are the core parameters used for analysis. I have used this model to analyse the competitive advantage of the Dicksmith store over the other stores for the product XL 250 in-cars GPS coded D4552.

The ease of entry is reduced by the technological capital that has to be invested by firms intending to venture GPS in- cars market. However, new entrants will come to the market especially as the technological advances are being experienced continuously and increase in customer needs and preferences.New Market Firms,

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There is flexibility as to the warranty the customer can take, from 0 to 2 years depending on willingness to pay for it. This is a kind of differentiation strategy.

Competitive factors

Tom tom’s brand reputation is relatively higher in Australia. However, since it has backward integration with Dicksmith stores, it gives the stores a competitive niche in supplies.

Supplier Power,

The Dicksmith website allows customers to comment on their satisfaction derived from the product and recommend the product. Assuming the site is not edited, this could enhance buyer power. But, if it’s edited to reflect the firm’s own comments, it curtails the buyer power.. Buyer power is enhanced by vast information garnered from the internet on price differentials of the different suppliersBuyer Power,

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Store have adopted time scheduling adding to free delivery of product as stated in Dicksmith’s website.

It fits to current trends and customer preferences as it has responsive and swift touch screen.

Back of the XL 250 is a large, loud and clear speaker making it easy to use while moving in the vehicle.

The price for XL 250 in-cars GPS at Dicksmith stores ($175) is relatively cheaper compared to the price of this product in other stores.

Product and Technological advancement,

The above diagram model illustrates the value of the firm over the other competitors in the market.

The customer’s choice on the product depends on how the firm presents its product to the competitive market. XL 250 in-cars GPS in the firm comes with the Australian map and the New Zealand map. For this case, customers will prefer to buy the product from the firm because they will not incur any extra cost of about $20 in purchasing the map. The map is already fixed and the product is ready to be just after purchase. XL 250 in-cars also came with 4 other maps.

Drivers with the product have an advantage of purchasing all other maps through the firm’s website using the devise. They only visit firm’s website and make online transaction which will cost them less compared to other gadgets serving the same purpose. Therefore, customers would like to acquire the company’s product.

Xl 250 in-cars GPS has quite variety of features that attract the interest of the customers. From the inquiries through the website of the firm, customers have realized features like car charger, cameras and port mount in the product. This gives them need for purchase of the product.

Customers are able to get complementary items like chargers from the firm when they purchase the product. For this case, they benefit from the well installed wiring system of the car since both the charger and the gadget are compatible hence there minimal complications if at all there arise any.


Free press of Glencoe, Illinois.Competitive strategy: Techniques for Analyzing Industries and Competitors,Michael E. Porter, (1980),