Example
Initial Post (500 words)
Week Five Presentation – Business Level Strategies
As a result of the ever-changing global environment markets have become highly competitive and turbulent and are constantly changing. Market conditions move from being simple to complex, from stable to dynamic, and from tame to hostile. It is imperative that companies develop strategies to increase their competitive advantage within the environment. Two of the core business level strategies that have the potential to strengthen the competitive advantage of a company are differentiation and cost advantage, both of which are fundamentally opposing approaches (Mukhopadhyay and Guangliang 2017).
The cost advantage model has less security then the differentiation model due a combination of vulnerabilities. This is as a result of this model being vulnerable to new technologies, innovation and external forces (Besanko, Dranove and Shanley 2001). Differentiation on the other hand is less exposed due to this strategy being based off the company developing unique and personalised components of their business that are often hard to imitate (Butler, 2021).It is important for companies to determine the demand from consumers for differentiation (Mukhopadhyay and Guangliang 2017). In the case of Lush Cosmetics due to increased awareness surrounding global climate change and increased pollution from a range of materials Lush were empowered to undertake differentiation as they could identify there was demand for eco-friendly, ethically sourced products (Borunda 2019).
While majority of makeup/beauty brands focus on mass-producing their products and using whatever ingredients it takes to get the desired effects, Lush has paved a path of its own since its inception: all of their products are handmade vegetarian, never tested on animals, and created with ethically sourced ingredients (Loeb 2016). Lush cosmetics has delved beyond the standard actions involved in differentiation and developed a unique business model with distinctive features throughout each aspect of their products and service. The company engaged in innovation and world-leading product development, identifying that the cosmetics industry generated alarming rates of waste annually, so they created packaging free shampoo that has now become one of their most famous products.
Lush Cosmetics differentiation strategy has been a success as a result of their ability to recognise the importance of the drivers of uniqueness. Instead of going for a luxurious brand feel that is common for makeup brands, Lush focuses on authenticity and ethical ingredients, displayed by their commitment to creating self-preserving products. The honesty and confidence displayed by Lush Cosmetics throughout the entirety of their business model in their products draw customers into their unique stores allowing them to stand out from the wide range of beauty brands. The foundations of Lush have been built upon sourcing and utilsing the products that are not typically employed for cosmetic practices. Lush Cosmetics is a critical buyer of a variety of inimitable products such as Orange Flower, buying 1/6th of the worlds annual harvest. Lush is on the rise as a result of their unmatched success throughout the global market with more locations opening around the world constantly, and their $1 billion mark in annual sales (Loeb 2016).
The questions that I was asked at the completion of my presentation contributed to a deeper understanding of the importance of not only having at least one unique feature throughout a business model but also continuing to re-evaluate the market climate. One question I was asked related to whether I thought the brand could easily be imitated, whilst I believe Lush has successfully built their brand of the foundations of ethical practices and eco-friendly products I do believe they must continue to innovate, develop and take risks to ensure they retain their unique image.
References
Butler, B. 2021 “Seminar 5b- Business Level Strategies” PowerPoint Presentation Slides, Module Five Lecture, Curtin University. Accessed via Blackboard.
Besanko, D., Dranove, D., & Shanley, M. 2001. Exploiting a Cost Advantage
and Coping with a Cost Disadvantage. Management Science, 47(2), 221-235. Retrieved April 9, 2021, from http://www.jstor.org/stable/2661571
Borunda, A., 2019. The beauty industry relies on plastic. Can it change? Environment. Accessed 8 April 2021. https://www.nationalgeographic.com/environment/article/beauty-personal- care-industry-plastic
Loeb, W., 2016. Lush Beauty: Taking The Industry By Storm Thanks To Young Love. Forbes. Accessed 10 April 2021 https://www.forbes.com/sites/walterloeb/2017/04/07/lush-beauty-taking-the- industry-by-storm-thanks-to-young-love/?sh=131f026311c5
Mukhopadhyay, Samar K. and Guangliang Ye. 2017. “Effect Of CSR On Product Differentiation In The Presence Of Cost Advantage.” Journal of Economic and Social Development 4 (1) (03): 15-27. https://link.library.curtin.edu.au/gw?url=https://www.proquest.com/scholarly- journals/effect-csr-on-product-differentiation- presence/docview/1882363636/se-2?accountid=10382
The post Example Initial Post (500 words) Week Five Presentation – Business Level Strategies appeared first on PapersSpot.
