One of the more interesting aspects of learning strategic management is that it shows you why companies need to implement change so as to stay competitive. Can you give an example of a company you are familiar with that underwent change in order to stay competitive?
Fiat had always been a very strong car manufacturer in Europe, Asia and South America. Their focus is mainly in small, fuel efficient cars and they hadn't been able to penetrate the American market because there was no demand for their product.
ReplyDeleteHowever, they decided to purchase Chrysler International about a year and a half ago. This means, that by expanding themselves and now owning a company that manufactures larger cars, they became very competitive, and now participate in a very large market.
Blockbuster videos was huge before the introduction of Netflix. With Netflix, you choose your price plan and they deliver DVD's directly to your house with easy return packaging/instruction without incurring late fees.
ReplyDeleteBecause of the introduction of Netflix, Blockbuster had to change its strategy and as of 2004, has a very similar online rental service. However, in order to stay competitive, Blockbuster allows its online customers to also be able to rent/return movies in stores as well as online. Blockbuster also receives new releases two weeks ahead of Netflix.
Although Blockbuster filed for bankruptcy in September 2010, they are introducing new pricing options and kiosks similar to Redbox.
- Raquel Tavarez