Introducing new brand into a market Case Study Example | Topics and Well Written Essays - 3000 words

Introducing new brand into a market - Case Study Example (Auchan, 2008). Currently, Auchan has formed an alliance with the telecommunications operator Wind, in Italy, to build the strongest virtual operator, supported physically by Wind to offer telecommunication services as well as attractive promotions and fidelity options to give customers a reason to choose its supermarket over the current leader. This is an example of the "flanker strategy" - the objective of this strategy is to defend an exposed flank, which in business terms, is translated into a weakness in the leader's offering. "a follower may try to capture a leading share in a market segment with a differentiated product where the leader is not strong." (Avlonitis, 2006, p. 49). Attacking a non natural action field will give them an advantage over Carrefour that will require time for them to regain. Archos France is a company that produces electronic components, specifically those dedicated to multimedia applications. The role of Archos is the one of a company that follows the pace of the technology dictated by other leaders like Apple. Its strategy is based on producing almost cutting edge technological products at a lower cost than the concurrency but not trying to get the leadership position, since the company does not invest in innovation and advertising to the extent of the leaders in the industry. This is despite the fact that the company claims to have an objective of being an innovative company that brings pocket entertainment to customers (Archos, 2008). "Firms which undertake a good deal of innovation often have to recoup massive investment costs. Market followers are able to copy what the leading firms produce and save themselves the burden of massive investment costs. This means that they can operate very profitably at the going price in a market." (Proctor, 2000, p .109). An example of this strategy is the multimedia reader Archos 405 which is a product that resembles the iPod touch from Apple but with less appealing characteristics that allows it to be commercialized at half the price. Geox Italy is a firm that works in the shoe industry where other companies like Nike or Adidas are leaders. The difference with the strongest brands is that Geox was born based on the innovative idea of creating a shoe that allows transpiration to go out of the shoe through holes that do not allow water to come in. Its objective is to create shoes that guarantee those aspects giving the company a strong niche orientation, "A cardinal rule for successful entrepreneurs is "find a market niche." Specialization in a product area can make you the recognized expert." (Lesonsky, 2001, p. 45); the family of shoes that uses the Geox breathes patented system was a success among the customer that searched waterproof shoes that allowed the feet to remain dry, a sector of the market which was not considered by the market leaders and challengers such as Reebok, Le Coq Sportif or Avia. Essay 2 (Deena) An Overview Many companies consider launching new brands and products into the market with hopes that it will provide these brands sustainability and an increase in market share. While processes for dealing with competition differ from one region to the next, it is also important to recognize that for some brands, their competition might not require the same marketing competitive

Applies the lesson to analyse a real world issue Assignment

Applies the lesson to analyse a real world issue - Assignment Example This phenomenon is not unique as during the Great Depression in 1930’s the world economy underwent a similar occurrence. According to Hazlitt (1946), there is a difference between economists; good economists and bad economists. The bad economists observe the direct impacts of proposed course, whereas the good one focuses on long and indirect consequence. Teiying economic to long term predictions is the foundations of a good economist and as Brux, (2005) predicted long term economic eventualities such as poverty marks such characteristics.   This argument cannot be further from the truth. Economists have always been grouped into different groups, but the world’s most prominent group is the Keynesian school of thought. Other economic schools of thoughts that have dominated academic thoughts throughout the 20th century and even the 21st century are the monetarist school of thought and the Harvard economic school of thought. According to the Keynesian school of thought, private capital investment decreased as a result of more capacity and the deficiency in good investment opportunities (Hetzel, 2012).   In fact, the concept of Secular Stagnation, a term coined by the Keynesian school of economics and it attributed the recession to inadequate capital investment hindering full employment of labour and other economic resources. Aptly referred to as the secular stagnation theory as articulated by the Keynesian school of economics, is a marketed different from the notion propagated by the monetarist school of economics. According to the monetarist theorists the recession was as a result of the tendency of the rate of profit to decrease, and as such businesses will block investments in manufacturing plants with a decreasing rate of return. Theorists have provided different arguments on the phenomenon of low economic growth, and especially that regards the same that was realized in the industrialized