3112IBA Management Strategy and Decision Making || Report

Added on - 01 Mar 2020

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Running head:GENERIC STRATEGIES PATAGONIA AND NORTH FACE COMPANIES CASE STUDY1GENERIC STRATEGIES PATAGONIA AND NORTH FACE COMPANIESCASE STUDYNameInstitution
Running head:GENERIC STRATEGIES PATAGONIA AND NORTH FACE COMPANIES CASE STUDY2DEFINE THE PROBLEM SITUATIONThe Problem SituationThe management of the two companies faces critical problem whereby managers areselling the same products, and they have continued to maintain a close relationshipdespite them being competitors. From this observation, it is evident that the companiesare suffering from inability to differentiate their product against those of thecompetitors as well as amongst themselves. For this case study, the two companiesappear to lose sustainability development and corporate social responsibility. The twocompanies are keenly concentrated on making a profit without paying much attentionto what is happening or what is going to happen to their competitors and environment.That is why the two managers uphold that they are entitled to do less bad to theenvironment[ CITATION Mel17 \l 1033 ].SELECT A STRATEGIC ANALYSIS MODEL FROM WEEKS 1-6 ANDEXPLAINWHYYOU HAVE CHOSEN TOAPPLYTHIS MODELTO THEPROBLEM SITUATION:Generic Strategies-DifferentiationThis model suits as the best to be applied in this case study. This can be attributed to itselements that appear to suit appropriately. First, differentiation model can be wellapplied whereby the company plans to develop a product that is different from thecompetitors[ CITATION Bor10 \l 1033 ]. This can be perfected through the distributionchannel. Patent protection, brand name, service levels, product innovation, productfeatures, product reliability and product quality. Both North Faceand Patagonia haveapplied only the aspect of quality to differentiate their products from those of thecompetitors. The amazing observation is that both the two companies are competitorsbut do not perceive the need of having different products[ CITATION Mel17 \l 1033 ]. Thetwo managers have transferred their lifelong friendship and relationship to business.Bearing in mind that businesses are termed as separate entities that are deemed tooperate in the foreseeable future, the two managers should be more focused ondesigning products that are different from one another to establish a competitiveadvantage in the market[ CITATION Cli08 \l 1033 ].APPLICATION OF THE SELECTED MODEL ANDDISCUSSION OFYOURFINDINGSUnder differentiation model, the firm strives to be unique in its industry by abiding bysome aspects that are largely valued and embraced by the customers[ CITATION Por08 \l1033 ]. Both Patagonia and North Face have come about toapply this strategy to high-quality products. However, the challenge remains that both companies to differentiatetheir product from one another. Secondly, two managers are using the strategy of the
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