Leadership Cost Strategies Case Studies Examples
Jones-Blair Company involves a complex and proactive market and organizational structure that is worth understanding. Thus, understanding the nature of complexity in which the company’s segments are categories into different groups and the effects in which each sector contributes to a suitable market environment is quite essential. Therefore, not only does the company internal and external structure build a competitive market environment for the business’s products, but also the position at which the company lies in a market life cycle (Dibb & Lyndon, 172). It is worth acknowledging that, the company integrates different scientific management strategies and concepts to target its reliable and potential customers for its business success. Analysis presented in this paper is helpful in understanding the concept used in characterizing the architectural painting coatings industry and the Jones Blair’s trade area and its segments. Further analysis uncovers Jones Blair opportunity representing parts as well as competitive position in the market area (Czerniawski & Maloney, 252). On a broad front, the paper presents realistically the company’s core competencies, the company’s customers buying behavior in relation to its SWOT analysis and vivid examination. Lastly, the paper provides a recommendation as well as a conclusion by the aid of graphics and tables illustrating the company’s marketing mix as well as financial position (Dibb & Lyndon, 187).
The architectural painting coating industry and the Jones Blair’s trade are characterized by the application of the Porter’s 5 Forces concept and principles. The Porter’s 5 Forces principles are helpful in uncovering the power balances of a firm within particular business conditions. The five factors taken into consideration focus on threats posed by competitors, substitutes, risk of new entrants and the influence of buyers and suppliers from a perspective of pushing prices either up or down. The principle is applicable in analysis of the competitive characteristics of Jones-Blair Company within its area of trade. In simple terms, the nature of their respective structure can be categorized by geographical location in which the business operates or the location of the target customers and its products and services. From a different perspective, the company can be categorized by demographical factors such as the classification of the target customers by age, level of education as well as gender (Dibb & Lyndon, 179). For instance, the Architectural products are categorized according to the purpose and buys specification. In addition, the company can be classified into psychographic factors in terms of customers’ purchasing behavior and traits. Jones Blair's market area can be segmented by both SWOT analyzes, the company’s position at the market life cycle as well as by its market trends to fit in a suitable and favorable competitive advantage. The SWOT analysis will focus on uncovering the strengths, weaknesses, opportunities and the threats that the company faces in its quest to gain market leadership through competitive advantages. It is worth understanding that, the architectural coating segment has differentiated goods and services that meet the company’s 35% total sales made to fit different customers’ tastes and preferences (Czerniawski & Maloney, 252). The company life at both established and mature business life cycle with relentless market structure and competition. There are more loyal customers that expand the profit margin through potential and reliable investors and minimum manageable challenges. The company market environment is expanding its market influence evidenced by fast growing sales and increased capacity utilization (Mellen & Frank, 413). Analysis of the company 4P’s market mix indicates a considerable increase in which the company products, prices, and promotion strategies favors the company. For instance, the architectural painting coating industry and the Jones Blair’s company gain a wide range market acceptance at high penetration prices at different market environment (Czerniawski & Maloney, 252). The market is expanding its influences with an increased profit margin, but the arrival of market competitors at the paint manufacturing levels has entirely changed the competitive behavior. However, the main competitors that face the business such as Sherwin-Williams, the Glidden unit of Imperial Chemicals and the PPG Industries do not reach the level of optimal competition to challenge the company’s growth (Dibb & Lyndon, 163).
The uncompetitive nature of the architectural painting coating industry by sharing a brand name with the Jones Blair’s company enable its product prices to be more aggressive than those of its competitor. The purchasing behavior of the Jones Blair’s business, as well as the architectural painting company, is motivated by the resources available, gathered information as well as the nature of the products or criteria. Conversely, there is intensive distribution of highly differentiated and improved products in a rationalized capacity (Mellen & Frank, 424). The product pricing is competitors based and the company promotional strategies focus on differentiation of the products rather than other factors. The company employs high persuasive advertising strategies that reposition the company to attract more customers as well as developing new uses of its products. In this regard, the company cash flow indicates a high positive value that march with the unit cost in conjunction with the economies of scale (Czerniawski & Maloney, 252). From a different perspective, the company reposition itself from going into a decline stage by increasing its promotional spending to a level that target the potential customers as well high market penetration. The marketplace in the marketing mix for the company is market target designed to direct customers to the available outlet and suitable distribution channels. For example, the home depot stores as well as international markets (Mellen & Frank, 411). The company’s SWOT analysis reveals the nature of the influences and impacts the company can handle within and outside the organization. The Company’s strength is witnessed by its position in the American markets as well as other international markets. In addition, the company has a well elaborated sound financial performance that earn the company significant growth in high competitive and large automotive markets such as China (Czerniawski & Maloney, 252). Having a strong financial base inhibits easy entry into the market by new entrants who may pose high competition and risk pushing the prices down. The company shared brand name with the John Blair’s company increase the durability and reliability of the products. However, the company products possess a high resale value compared to their competitors increasing the company’s profit margin. Conversely, the company has a broad range of market opportunities will intend to increase its market dominance for a number of years. For instance, the company’s potential customers and consumers have a positive attitude towards their products (Mellen & Frank, 403). In addition, the increased market price dominance and cash flow enable the company explores different customers taste and preference. However, the customers buying behavior and characteristics with enough time and money to study their products give the company an additional advantage in conjunction with the strategic partnership that exists between the two companies (Czerniawski & Maloney, 247). In contrast, there are various threats and weakness the Jones Blair’s business and the architectural painting coatings industry faces within its area of operation. For instance, there are emerging intense competitions for other firms that produce similar products and services. Fluctuating exchange rates in the foreign markets reduces the profit margin at which the company should enjoy. From a similar point of view, unprofitable operations incurred during product promotion and high-cost structure within the same business environment exposes the business to various weakness and threats (Mellen & Frank, 416). In reference to the Porter’s Generic Strategies, the analysis of the company and its products indicates the company’s position in its market operations. The company’s cost leadership strategies focus on average prices to create high profit and market shares. Similarly, it has differentiated strategies that call for the development of unique products that advocate quality and innovation through scientific research and product promotion (Czerniawski & Maloney, 314). In addition, the company focuses on a narrow segment that enable it passes the high cost of its products in favor of those from their competitors. However, there is integration of cost leadership with other generic strategies to allow the company attracts more customers as well as winning a higher competitive advantage.
Differentiated Narrow segment
The architectural painting coatings industry and Jones Blair's trade core competencies enable the company coordinate and produce suitable skills that integrate multiple technological capabilities for the company’s successful performance. The company business has three core competencies mainly skillful personnel, logistic and customer services that enable the company developed a broad range of differentiated goods that access a wide variety of markets (Mellen & Frank, 403). In addition, the company has a significant contribution to the market environment structure that makes it difficult for the competitors to exploit. It is worth acknowledging that, the company has stable and sustained leadership that enable it controls its market opportunities, management as well as influence other market issues positively (Czerniawski & Maloney, 231).
As has become evident through the analysis, the architectural painting coatings industry and Jones Blair's trade characterization and segmentation process can only be understood through collective bargains. Generic strategies learning in conjunction with SWOT analysis of the respective business company enable exploration of its structure of activities. The application of the Porter’s 5 forces in the analysis is very important in a particular aspect; it helps in uncovering the nature of the business conditions hence making it possible to determine the areas to improve on to withstand the forces of competition. Thus, the company’s competitive advantage, market position as well as its core competencies are clearly revealed out and understood. In this regard, the architectural painting coatings industry and Jones Blair's trade can be categorized to possess a narrow market segment within a stable and mature market life cycle with differentiated goods and services. However, the company has intensive and persuasive distribution channels as well as rationalized capacity.
Czerniawski, Richard D, and Michael W. Maloney. Competitive Positioning: Best Practices for Creating Brand Loyalty. Poughkeepsie, NY: Hudson House, 2010. Print.
Dibb, Sally, and Lyndon Simkin. Market Segmentation Success: Making It Happen!Hoboken: Taylor and Francis, 2013.
Mellen, Chris M, and Frank C. Evans. Valuation for M & a: Building Value in Private Companies. Hoboken, N.J: Wiley, 2013. Internet resource.