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Assignment 3

Characterize your company’s competitive strategy. Take your company’s present customer value proposition as a starting point. Motivate your characterization

The value proposition of XYZ includes functional and emotional benefits for customers. However, the most of the competitive strategies of XYZ are related to functional rather than emotional benefits. XYZ’s competitive edges are operational excellence and customer intimacy. Product leadership is not XYZ’s competitive edge while its competitors, for example K-Rauta, seem to be adopting the product leadership strategy that is very irrelevant for this industry. To be more specific, in order to achieve competitive advantage, XYZ formulates its competitive strategies such as low cost strategy, prompt delivery strategy, and concentrating its businesses on Northern territories strategy.

First, XYZ sells its products in relatively lower prices than its competitors do. The low cost strategy is relevant and beneficial to XYZ. It is relevant because the products offered by XYZ and its competitors are not significantly different in function. It is beneficial to XYZ because this strategy has helped XYZ to increase market share in markets. Operational excellence is achieved through low cost strategy. XYZ has been able to sell its products in lower price because of its cost saving logistic system. XYZ claims that the logistic system of XYZ is difficult to copy for its competitors because of its location selection. The stores are located in such a way that inward and outward logistics for XYZ is far more cost saving than its competitors logistics. In addition, such a unique mechanism of logistics leads XYZ to adopt prompt delivery strategy.

Second, XYZ delivers its products and services faster than its competitors do. This strategy has been beneficial for XYZ by adding value in its value proposition. The positive part of this strategy is that XYZ provides a high level of customer satisfaction. The...

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