MMM132 Study Guide - Midterm Guide: Aldi, Corporate Social Responsibility, Cost Leadership
12 Jun 2018
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MMM132 Week 6 Tutorial Activity 2 Suggested ResponsesPage 1
MMM132/MMMP132 WEEK 6 TUTORIAL ACTIVITY 2 SUGGESTED RESPONSES (LECTURER
COPY)
Competitive Strategies
(Total time: 60 minutes)
Learning Objectives:
At the end of these activities you should be able to:
● describe and differentiate between 4 strategies managers can use to compete in
their industry to gain and maintain competitive advantage;
● explain how these strategies are used
Activities (allow 20 minutes for each question, followed by 20 minute class discussion):
These activities are to be conducted in teams of 4 or 5 students.
Youre o dout aare there is fiere opetitio etee the three ajor superarket
chains, Aldi, Coles, and Woolworths. Given these organisations compete in the same
industry, share many external environmental factors, and have goals that relate to profit,
market share, corporate social responsibility you may think they would follow similar
strategies to gai opetitie adatage. This of ourse ist so. A SWOT ad resoure
analysis would identify significant differences between them.
1. Describe how each of the following four competitive strategies is used to gain
competitive advantage:
a. Cost leadership
b. Differentiation
c. Focus cost leadership
d. Focus differentiation
Cost leadership: aim is to gain competitive advantage by being the lowest cost
producer in the industry
Differetiatio: ai is to differetiate the orgaisatio’s goods ad or services i
ways customers value
Focus cost leadership: aim is to choose a focus or target market group and apply cost
leadership
Focus differentiation: aims is to choose a focus or target market group and apply
differentiation
2. Using the examples of both Aldi, and Woolworths, identify which strategy or
strategies (organisations can pursue more than one) your team thinks each of these
organisations follows to gain competitive advantage. Provide reasons for your
choice(s) of competitive strategy/ies each pursues.
Team responses may vary however it is likely they will identify Aldi pursues an overall
cost leadership strategy. Teams may argue also that differentiation is a strategy
pursued by Aldi also as the goods and services provided differ. This is okay
however the goods and services differ in order to reduce costs (no-name brands,
little variety in choice of goods offered, inferior store layout, few checkouts, long
queues, no packing of goods etc)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Mmm132/mmmp132 week 6 tutorial activity 2 suggested responses (lecturer. At the end of these activities you should be able to: Describe and differentiate between 4 strategies managers can use to compete in their industry to gain and maintain competitive advantage; Activities (allow 20 minutes for each question, followed by 20 minute class discussion): These activities are to be conducted in teams of 4 or 5 students. You(cid:859)re (cid:374)o dou(cid:271)t a(cid:449)are there is fier(cid:272)e (cid:272)o(cid:373)petitio(cid:374) (cid:271)et(cid:449)ee(cid:374) the three (cid:373)ajor super(cid:373)arket chains, aldi, coles, and woolworths. Given these organisations compete in the same industry, share many external environmental factors, and have goals that relate to profit, market share, corporate social responsibility you may think they would follow similar strategies to gai(cid:374) (cid:272)o(cid:373)petiti(cid:448)e ad(cid:448)a(cid:374)tage. A swot a(cid:374)d resour(cid:272)e analysis would identify significant differences between them: describe how each of the following four competitive strategies is used to gain competitive advantage, cost leadership, differentiation, focus cost leadership, focus differentiation.
