Competitive Strategy Report

This report examines the competitive strategies of companies in the computer and automotive industries. It analyzes IBM and Microsoft's global strategies and business model changes, focusing on technological innovation and market expansion. For the automotive sector, it investigates Tata Motors and Maruti Suzuki's target markets, modes of entry (including licensing and strategic alliances), and their approaches to the rural market. The report concludes by comparing the success of these companies, highlighting their customer retention strategies and brand image building.

RUNNING HEAD: Competitive strategy
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Competitive strategy
Computer and Food & Car industry

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Executive summary
The competitive strategy may be defined as the long term ideas of a specific organization in
order to obtain competitive benefits over its contender in the industry. The main objective of the
competitive strategy is to recognize comparative benefits of the organization, understand the
various strategies of competitors and selecting the appropriate strategy for the competitive
advantages. The competitive strategy enables the organization to sculpt out how organizations
need to stay and operate in an industry and obtain the competitive benefits over its competitors in
the same industry. In order to be successful in the market, there had to be a competitive strategy
that works competently with its core business procedure which organizations can utilize in order
to invite their customers.

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Competitive strategies (Computer industries).................................................................................4
IBM Competitive strategies.........................................................................................................4
Global strategy for business model change..............................................................................4
Microsoft Competitive strategies.................................................................................................5
Global strategy for business model change..............................................................................5
Competitive strategies (Car industries)...........................................................................................6
Tata Motors Competitive strategies.............................................................................................6
Target market and modes of entry............................................................................................7
Maruti Suzuki Competitive strategies..........................................................................................7
Target market and modes of entry............................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
A strategy refers to a plan or action that is designed to achieve the long-term objective of
business. This report explains the competitive strategy of the different industry that is computer
industry (IBM and Microsoft) and car industry (Tata Motors and Maruti Suzuki). The report
analyzes the competitive strategy of these industries on the basis of global strategy as business
model change and targets markets and modes of entry. The report also evaluates the approaches
of the both the industries and find the reasons behind their success with respect to the theory. The
main purpose of examining the competitive strategies of the computer industry and car industry
is to know the competitive advantages and the strategy which will increase the performance of
the industries.
Competitive strategies (Computer industries)
According to Becker-Ritterspach & Bruche (2012), the report explains the competitive strategy
of computer industries which show IBM and Microsoft Company strategies on the basis of
global strategy as a business model change.
IBM Competitive strategies
According to Bock et al. (2012), IBM (International Business Machines) is a multinational
technology organization which produces and markets personal computer hardware, software and
offers to facilitate and counseling in areas running from centralized a server to nanotechnology.
IBM is also a big major research company, holding the record for most licenses created by a
business for 24 consecutive years. The competitive strategy of IBM is explained on the basis of
two major factors which are detailed below:
Global strategy for business model change
According to Bowonder et al. (2010), IBM strongly operates in the worldwide information
technology industry through the effective execution of the firm’s common strategy for the
competitive benefit and intensive development strategies to utilize growth opportunities in
several markets. IBM had a large rate of technological creation is at the core of the company’s
common competitive strategy. Establishing a worldwide business model refers to the
advancement of an all around incorporated condition, using capacities to manufacture an
arrangement of business and abilities to better contend and better serve the necessities of buyers

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internationally. IBM working in a multinational plan of action with the little IBM in the greater
part of the nations, for example, in IBM Japan, IBM Canada, IBM France and in more countries
(Casadesus-Masanell & Ricart, 2010). IBM is able to adapt a shared service model that permitted
the company to strip away a lot of the cost and difficulties while utilizing the resources and
talent. The competitive strategy of IBM also concentrates on the expanding, generating and
delivering large value for the customers rather than maintaining the inside working. IBM is
motivating policy makers to concentrates on the favorable actions in order to make better
creativity abilities and skills development.
Microsoft Competitive strategies
According to Cusumano et al. (2015), Microsoft is an American multinational development
association which produces, makes, licenses, support and offers PC programming, customer
equipment, PCs, and organizations. The best-known programming consequences of Microsoft
are the Microsoft window line of working frameworks, the Microsoft office suite and the web
voyager and edge web programs. The affiliation also makes an expansive combination of other
customer and endeavor programming for desktops and servers, including Internet look, the
computerized administration's showcase, blended reality, cloud computing (Azure) and
programming improvement (Visual Studio). The competitive strategies of Microsoft can be
explained by the below following factors:
Global strategy for business model change
According to Grant (2016), Microsoft can accomplish overall markets and use these business
divisions as an outlet to bring lower advancement and information systems costs is through the
technique of outsourcing. In April 2010, Microsoft indicated a game plan with an Indian
outsourcer Infosys Technologies LTD in order to manage parts of the generally speaking internal
information technology costs. Microsoft is a world leader in computers innovation and has
positioned itself as the main presence in India. The business strategy of Microsoft combines the
main three elements:
Cloud first: According to Gupta & Malhotra (2013), the insightful cloud represents one of the
strong powerful components of Microsoft competitive benefits and Microsoft business strategy
puts the main focus on cloud segment of the business. The main objective of the company was to
accomplish USD 20 billion in commercial cloud annualized income in the financial year 2018.

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Growing through mergers and acquisitions: In June 2016, Microsoft procured LinkedIn for USD
196 per share in all money exchange valued at USD 26.2 billion. This specific acquisition
assumes an instrumental part to interface the world’s expert cloud and the world’s professional
network in making new encounters and new value for business clients.
Concentrates on expansion: According to Hollensen (2015), the company has shared substantial
time and energy in explaining the business capability which can utilize for business. Moreover,
Microsoft is enablsing to indicate how virtual reality could better the shopping experience
especially in education and automotive creation.
Competitive strategies (Car industries)
According to Howes et al. (2013), the report explains the competitive strategy of car industries
which explain the strategies of Tata Motors and Maruti Suzuki organization. The report describes
the competitive strategies of these companies on the basis of target market structure and modes
of entry.
Tata Motors Competitive strategies
According to Keller et al. (2011), is an Indian multinational car fabricating association which
produces autos, trucks, vans, mentors, transports, sports autos, development things and military
vehicles. To put it plainly, the organization serves to the three market partition comprehensively
that is traveler autos, utility vehicles, and business vehicles. Goodbye engines are likewise
recorded on the Bombay Stock trade where it is a part of the Bombay stock trade, National stock
trade of India and the New York Stock trade. Goodbye engines have gone into key securing and
joint ventures in its inside level and begin new things at a faster rate in a couple of business
sectors. In the current circumstance, association acknowledges the position of being Indian's
driving vehicle maker with broadening proximity in Europe, South East Asia, Africa, Australia
and the center East with an aggregate a more unmistakable measure of US $ 4 billion (McGrath,
2013). The affiliation prevalently concentrates on giving customers the best a motivating force
for their cash meets European principles and biological course through their impelled
progressions. The association is a general concern working in more than 100 countries with
incalculable as there is no other industry which is from every angle untouched by the social
event.

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Target market and modes of entry
According to Ortega (2010), the automobile industry is of vital significance to the Australian
economy as the automobile is the biggest manufacturing industry in the United Kingdom. This
industry supports many different businesses such as aluminum, steel, glass, plastic and also adds
to the exports of the country. Tata Motors, the Indian automobile brand has looked to think with
a variety of light commercial vehicles in the United Kingdom automobile markets, with the
support of the local United Kingdom automobile wholesaler, fusion automotive. This partnership
would empower Tata motors to enter the United Kingdom competitive markets giving select
appropriation rights to Fusion automotive.
The convergence of Tata's market segment will be the UK. There are few purposes behind
picking the UK as the goal advertises. These positive factors were the status of India as the great
money related expert, UK auto feature movement, and potential, tongue comparability.
Exchange nations which were considered as insistently captivating were:
According to Peng (2013), USA is the biggest market size in the world developing its business
sector with critical deals potential. The option of the USA as target advertise was declined as a
result of to a great degree fantastic requirements and other non-require obstructions which make
it troublesome for another part to enter this market. Likewise, this market is outstandingly
making and encounters crazy level of centered weight. Concerning Russia, there were two or
three negative parts which made it less captivating than the UK that is the helplessness of the
further budgetary state, high path obstacles and no inside and out made dealership arrange.
Maruti Suzuki Competitive strategies
According to Rays & Ray (2011), Maruti Suzuki India Limited is an automobile fabricates in
India. Maruti Suzuki was India real car maker and the market pioneer in the auto division, both
as far as the limit of vehicles and wage earned. The main competitive benefits of the industry are
in terms of price, quality, and service. The company is famous for its large manufacturing
standards and it gains award from the All India Engineering Export Promotion Council (EEPC)
for the successive three years 1987, 1988 and 1989. The company concentrates on the improving
manufacturing, enhance capacity, and build new items at persistent periods in order to meet to
every one of the fragments of the Indian traveler auto market and undertaking into other related
organizations like auto fund, protection and buying and offering utilized Maruti's vehicles. As

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indicated by Teeratansirikool et al. (2013), Maruti's reoriented exercises helped the association to
keep up its market authority put and keep up its piece of the pie. As a segment of focused
technique, organization broadens its item portfolio and grows its deals and administration
associations over everywhere India and with the rising competition, the company takes decisions
to meet to all the segments of the Indian car market. A company by taking into consideration the
rise in demand for passenger cars from several segments, Maruti Suzuki provides cars for
different divisions such as follows:
For the low level of income, Maruti 800 and Maruti Omani offered by the company
For the middle level of income, Maruti Zen and Swift offer by the company
For the high level of income, Swift Dzire, SX4 to sports benefit vehicle offered by the company.
Thus, the company realizes that the strategy of segmentation permit organizations to remove
direct competition in the market by distinguishing their products offering not only on the price
basis but also by packaging, advertising appeal to customers and distribution methods.
Target market and modes of entry
According to Zott et al. (2011), Maruti Suzuki targets the rural market which is the main
correspondent for the four-wheeler industry development. The proportion of 46 percent of the
sales of Hero MotoCorp is assigned to the rural division. The rural market has the capability for
development and can be depended upon for a sustainable growth. In the present scenario, one out
of the each three cars that the car manufacturer sells is sold in the rural segment. The company
has set estimations of 50 percent sales from the rural segment by the year 2015-2016 and the
company gets the success for this estimations. Maruti already targets this market and even in the
last month, there was the rise in the sales and the growth rate of the company was 55 percent.
Company rural's market concentrates initiative begin back in the year 2007. The company
segmented the class into small groups. The company appeals its capable customers through the
Panchayats. The media also a significant part of this segmentation in order to carry the message
of these automobile companies to the potential customers. Maruti Suzuki makes its availability
stronger by opened up 23 new retail outlets in the rural towns.

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The modes of entry company adopt is licensing and strategic alliances. The main advantage of
licensing in entry mode for the company was the small investment on the part of the licensor is
required and has the capability to offer a large return on investment. Licensing also decreases
cost and involved limited risk. On the other hand, strategic alliances have become very popular
in the recent years. This mode of entry allows the companies to divide the risk and resource
required to enter into the foreign markets.
Conclusion
From this report, it has been concluded that the strategies adopted by computer industries
(Microsoft and IBM) and car industries (Tata Motors and Maruti Suzuki) are exclusive and
attractive. Their customer retention comparatively high in comparison to others. Microsoft
and IBM offer several useful features to make email experiences as smooth as possible
which includes software program, hardware, spam filtering, and much more which makes its
products and services more attractive. On the other side, Tata Motors and Maruti Suzuki is
already creating a superior brand image for all products it sells to the customer and solves
queries for each customer by remaining available all time.

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References
Becker-Ritterspach, F. & Bruche, G., 2012. Capability creation and internationalization with
business group embeddedness–the case of Tata Motors in passenger cars. European Management
Journal, 30(3), pp.232-247.
Bock, A.J., Opsahl, T., George, G. & Gann, D.M., 2012. The effects of culture and structure on
strategic flexibility during business model innovation. Journal of Management Studies, 49(2),
pp.279-305.
Bowonder, B., Dambal, A., Kumar, S. & Shirodkar, A., 2010. Innovation strategies for creating
competitive advantage. Research-technology management, 53(3), pp.19-32.
Casadesus-Masanell, R. & Ricart, J.E., 2010. From strategy to business models and onto
tactics. Long range planning, 43(2), pp.195-215.
Cusumano, M.A., Kahl, S.J. & Suarez, F.F., 2015. Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Gupta, S. & Malhotra, N., 2013. Marketing innovation: A resource-based view of international
and local firms. Marketing Intelligence & Planning, 31(2), pp.111-126.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Howes, R., Skea, J. & Whelan, B., 2013. Clean and competitive: motivating environmental
performance in industry. Routledge.
Keller, K.L., Parameswaran, M.G. & Jacob, I., 2011. Strategic brand management: Building,
measuring, and managing brand equity. Pearson Education India.
McGrath, R.G., 2013. The end of competitive advantage: How to keep your strategy moving as
fast as your business. Harvard Business Review Press.
Ortega, M.J.R., 2010. Competitive strategies and firm performance: Technological capabilities'
moderating roles. Journal of Business Research, 63(12), pp.1273-1281.

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Peng, M.W., 2013. Global strategy. Cengage learning.
Ray, S. & Ray, P.K., 2011. Product innovation for the people's car in an emerging
economy. Technovation, 31(5), pp.216-227.
Teeratansirikool, L., Siengthai, S., Badir, Y. & Charoenngam, C., 2013. Competitive strategies
and firm performance: the mediating role of performance measurement. International Journal of
Productivity and Performance Management, 62(2), pp.168-184.
Zott, C., Amit, R. & Massa, L., 2011. The business model: recent developments and future
research. Journal of management, 37(4), pp.1019-1042.