Abstract
Many elements can influence the corporation’s conduct in the world of business nowadays, particularly when the matter relates to market forces and competitive advantage. This paper discusses the case study of Masco Corporation with in-depth recommendations. Conclusion is provided to summarize the paper’s details and a reference list is attached.
Masco Corporation – Case Study Analysis
From the chart, one can realize how far Masco could focus on its strategic management (Masco, 2007).Yet certain issues are absent, which must be included in the schedule of Masco to realize the utmost benefits possible and enhance its management.
Competitive Advantage
The competitive advantage assists in getting a suitable edge over rivals by adapting cost leadership strategy. The strategic managers must design a cost leadership strategy at the utmost lower cost possible, a differentiation strategy, which they realize by sizing alternatives for different market segments, and the focused strategy to be able to concentrate deeply on various market segments.
The customers’ values of competitive advantage focusing on the dollar value and the brand names they purchase at the utmost lowest price. Competitive advantages include many elements, such as reputation, well brand image, convenience, design, quality, and of course, the price. (Pfeffer, 1995).As long as customers decide to purchase, they focus on the price, brand image, and quality. According to Porter (1980), three elements are missing in the case study of the corporation. Cost leadership is the first one, whereas the corporation tries to produce at the lowest cost possible. Thus, it can sell its main product, which is similar to other products available in the market.
The second is the product differentiation, where the corporation targets to differentiate its main products from those of its competitors. It can do that via developing the features of its products that do not available to products of others. Yet, the customer is the sole person who can value those features. That in turn, enables the corporation to charge its premium price (Sweeney & MacLellan, 2006). The last is the focus, whereas the corporation tries its efforts to focus on one market segment. Thus, it can be that expert supplier for their selected sector.
Marketing Strategies
When the matter comes to competitive advantage, it must focus on the ideal marketing strategies. Three types of marketing are available, perfect competition, monopoly, and oligopoly (Pfeffer, 1995).
Evaluation
No doubt, the importance of changes in the external environment will be clear to any organization, such as Masco. There are wide ranges of development of department store industry in the United States for many years, while Masco gets its ability to establish itself, considering being such a leader of the pack. Huge competition among producers and retailers has mainly, forced down prices while this is, in turn, permits Masco to become the sole dominant retailer in the United States, particularly if wide changes in the external environment occur.
As an assessment of the case of Masco, we can observe that the main challenge its management is facing is the way by which it can sustain its growth that appeared extraordinary. As soon as the local market reached saturation, it must try a declaration of a requirement for an urgent global expansion.
Conclusion
If Masco can use its capabilities and resources to develop its organizational competencies, competitive advantage can occur and the corporation can create its values for its loyal customers.
References
Masco, Masco Corporation 2007 Annual Report.
Pfeffer, J. (1995). Competitive Advantage Through People: Unleashing the Power of the Work Force. Harvard Business Press.
Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
Sweeney, S., & MacLellan, A. (2006). 3G Marketing on the Internet: Third Generation Internet Marketing Strategies for Online Success. Maximum Press.