Make an introduction based on this essay.

1. Five Generic Competitive Strategy

Low-Cost Provider Strategy

The primary goal of this strategy strives to develop prices that are lower compared to the competitors where the competitors will not satisfy the consumers' savings and satisfaction for the goods and services. Firms utilizing the low-cost provider strategy tend to gain a humongous market share, resulting in massive profits from new and loyal customers.

Broad Differentiation Strategy

Operating a business with a broad differentiation strategy implies understanding the mass consumer's needs, wants, and emotions, whereas a firm develops products or services that meet those criteria. A firm that operates with a broad differentiation strategy can gain massive profits because it can charge higher prices for its products and services.

Focused Low-Cost Strategy

The focused low-cost strategy strives to deliver low prices to a specific component of a marketplace instead of targeting the broad marketplace. Focused low-cost strategy deep dive to the age range, gender, interests, values, and economic capabilities of the consumers rather than offering low prices to the market where the certainty of seizing customers' attention is uncertain. As a result, it will be easier for firms to predict the customers' changing needs and wants, which can result in a positive outcome.

Focused Differentiation Strategy

The focused differentiation strategy is where a firm offer different products or services to a specific segment of the marketplace. The strategy does not attempt to capture the whole marketplace but instead focuses on a particular segment within a marketplace.

Best-Cost Provider Strategy

The best-cost provider strategy is a competitive strategy where a firm decides its focused market. In this strategy, the firm attracts consumers by low cost and implementing lower cost. Consumers get attracted when they feel that they are getting real deals and savings tons of money. In order for this strategy to be successful, a firm must find a suitable low-cost manufacturer that meets the firm's core values.

2. Identify your chosen strategy and five decisions you made to support your strategy. Each decision must come from a different decision screen. (Hints: product design, marketing, finance & cash flows etc.).

In Dior Company, the strategy we have been using up to year 8 is the low-cost provider strategy. A low-cost provider is when a company strives to achieve a lower overall cost than rivals appealing to a broad spectrum of customers (Gamble, Peteraf, Thompson,2022). Our team decided to use this strategy mainly because we are aiming for a product that is affordable for a broad scale of market.

This was supported when we entered our decision for year 6. Compared to the average industry price, we implemented a slightly lower price than the industry average. Despite pricing our product low, we also ensured that our market niche would have the satisfaction they deserve in using our product. For example, the P/Q rating in year 6 of our AC-Camera is slightly higher than the industry average, which is a 4.7 rate. This way, our products will be "viewed by buyers as offering equivalent or higher value even if priced lower than competing products" (Gamble, Peteraf, Thompson,2022). A few other strategies we did to implement a low-cost strategy are cutting off some of our expenses, such as marketing costs. We decided to lessen our sales promotions and discount weeks compared to the other industries. On the other hand, we focused on promoting through Website Displays (search engines) and advertising budget.

Though these strategies worked as we entered year 6, we did not get lucky in the subsequent years. In year 7, we decided to cut off some of our Product R&D, and we did not invest in our worker's compensation. These are some of the pitfalls of a low-cost strategy.

As an amendment, entering year 9, we are diverting our focus into a more reasonable strategy.

3. Rate the strength of each Industry force using Porter's Five Competitive Forces Model. Support your assessment rating.

When examining Porter's five forces of competition, it's also vital to consider the external aspects or circumstances that could have an impact on the organization and cause problems. Porter's five variables might not always provide a clear picture of a company's attractiveness, including profitability. With less rivalry and a higher opportunity for profit, it is obvious that some forces may be weak. On the other hand, strong forces may result in increased competitiveness but reduced profit margins. Consequently, it is advised that when ranking the five factors, one considers either an attractive or unattractive industry structure. The threat of new entrants, as well as supplier and purchaser negotiating power, and the threat of replacement products, remain low for appealing ones. As a result, the intensity of the rivalry between competitors is reduced. For an unappealing industry, it's the other way around.

Threat of New Entrants - Threats of new entrants would put a company under competitive pressure. This is the case since virtually every business strategy is dependent on product design, assembly line, remuneration and labour, discount bids, corporate citizenship, finance, and cash flow. For example, if a new product enters the market with the same design as an existing product but with a small price difference, it will be difficult for my company to keep its product on the market. Since new entrants have various simulation methods, it is crucial to understand new entrants in the market to compete at an early stage.

Bargaining Power of Suppliers - Because the innovation technology leads to greater costs, the supplier's bargaining leverage is higher in this scenario. Suppliers, for example, might charge more for the technology and innovation they offer.

Bargaining Power of Buyers - In the decision-making process, the buyer has less bargaining power. They must complete the negotiations at a higher price.

Threat from Substitute Products- The handling of alternative products is also low, suggesting that they are not available on the market. As a result, there isn't much of a competition.

Rivalry among the existing players - Market competition exists, and the competition is fierce. There are many innovative technology companies in the market today. As a result, there's a fierce competition.

4. What are your management hot spots? What decisions are you going to makegoing intoyear 10to address your concerns and improve your company performance?

What is crucial in managing the Dior company is considering every move of the competing companies. Staying on average or below range may impact revenues and brand reputation. The management has seen that in the past years, the company is below average and started as a weak brand and did not invest in marketing and building the company's brand reputation. This management strategy did not give the company success and did not lower the cost in the upcoming years.

To address this management hot spot, the co-managers decided to ramp up the budget for building the brand's reputation to improve the company's performance and increase revenue and net profit. The company invested in CSRC to increase image rating up to 74. Dior company also joined the "Special Contract Offer" to achieve a high brand reputation if the best result is achieved by maintaining the 75-value index in North America, 76 in Europe- Africa, 74 in Asia- Pacific and 72 in Latin- America.