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The more unique the difference, the more sustainable is any advantage which accrues.
Differentiation at BMW inevitably adds costs, which are recouped because the customers are willing to pay the required premium prices (Mun 2010).
A good image is not only one of the best means of product of differentiation; it is also a major sustainable competitive advantage (Ferrell & Hartline 2010).
BMW product has characteristics that customers associate with its automotives and other vehicles include reliability, durability, ease of use and trusted brand name.
This is a valuable asset that allows the company to charge a premium price (Hill & Jones 2012).
BMW is likely to experience problems with powerful buyers because they offer distinctive vehicles that command brand loyalty.
The managers must ensure that the prices are not so high that it chokes off the increase in expected demand that is to prevent customers from deciding that the extra differentiation is not worth the higher price (Hill & Jones 2009).
Strategic alliances are unique resources and capabilities that support BMW’s differentiation strategy.
All automotives available from BMW evidently target customers who are willing to pay premium prices for alleged higher quality (Thompson 2005).
A strategic alliance is a cooperative strategy in which firms combine some of their resources and capabilities for the purpose of creating a competitive advantage.
Hitt, Ireland & Hoskisson (2012) noted that strategic alliances involve firms with some degree of exchange and sharing of resources and capabilities to co-develop, sell and services products.
The differentiation strategy protects BMW from competitors when customers develop brand loyalty for its products.
Hill & Jones (2009) established that differentiators are unlikely to experience problems with powerful buyers because they offer a distinctive cars, tracks and services that command brand loyalty, and only tey can supply them.