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Jim Warnick
January 2018
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Running head: 5.4.2 Alternative Case Study Assignment
“A Propitious Niche is an extremely favorable niche that is so well suited to the firm’s
internal and external environment that other corporations are not likely to challenge or
What can cause a propitious niche to appear is when there is a window of opportunity for
a company to move into with its products or services and it is just large enough that no
other firm is able to become a competitor due to financial backing or time that it would
take them to become involved. Most firms are always searching for these short slots to get
their firm into. As an old adage would say the early bird gets the worm. This is the case
when a propitious niche appears. A firm that is capable of taking advantage of the niche
What can cause a propitious niche to disappear is when a firm realizes that in order to stay
ahead of the competitors and market they need to start investing more into their
2. What does a business have to consider when trying to follow a cost leadership
“Companies that are capable of working in the grey area between both cost and
company would lean towards either direction it could create a failure point. If there is
weak competition this can also cause failure and vulnerabilities within the company. If
there is a strong market cost can be a great advantage. It allows the company to repurpose
that money and redirect it into product and aid in an increase in cost leadership. A
company should always consider taking on any differentiation opportunity that they are
presented with that does not drive cost. Aside from that they should always be ready to
pick and choose the ultimate competitive advantage and look into what tradeoffs may be
A company according to our text that was unable to manage the grey area or middle
ground was Kmart. The tried to be competitive with Walmart and Target but was unable
to do so financially and entered into bankruptcy. (Wheelen, T., & Hunger, J. (2017)).
3. How can a company have a sustainable competitive advantage when its industry
becomes hypercompetitive?
In order for a company to remain competitive and maintain its sustainable competitive
advantage they need to try to keep their product costs as low as they can but still gain
profit. The profit gain needs to be substantial enough in order for them to be able to work
on improving their processes and add needed value to their products and services.
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Running head: 5.4.2 Alternative Case Study Assignment
Most alliances only last long enough for one of the companies involved to gain the upper
hand over the other. Normally after a period of time working together one of the
companies will want to start taking claim to whatever the effort is and conflicts begin.
This is when the differences start and one company starts moving out to manage the
References
Management, and Business Policy. Upper Saddle River, NJ: Pearson Prentice Hall.