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Eight Strategies in Capsim
The following questions can help guide MediCorp’s choice of strategy:
Will MediCorp be local or global?
Will MediCorp be niche or broad?
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Will MediCorp be a cost leader or a differentiator?
The two tables below differentiate local strategies from global strategies. For the purpose
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of Projects 3 and 4, we will use the following terminology for the eight strategy choices:
NicolasMcComber / E+ / Getty Images
Local
Niche Broad
Course Resource
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Differentiator Focus on the high-tech segment
in only one country (local).
Competitive advantage is gained
by distinguishing products with
excellent design, high awareness,
easy accessibility, and new products—any of which may be
tailored to the individual local
market’s needs. R&D
competency is developed to keep
designs fresh and exciting.
Products will keep pace with the market, offering improved
accuracy and speed. Tailoring
products with specific region kits
is considered. Prices are above
average. Regional and product
branding and sales efforts are
given a larger budget to work with. Capacity is expanded as
higher demand is generated.
Vision statement: Premium,
tailored products for technology-
oriented customers in the local region; our brands define the
cutting edge.
Maintain a presence in both
segments of the market in
only one country (local).
Competitive advantage is
gained by distinguishing
products with excellent design, high awareness, and
easy accessibility. R&D
competency is developed to
keep designs fresh and
exciting. Products keep pace
with the market, offering improved accuracy and speed
– and sometimes tailored
region kits. Prices are above
average. Capacity is
expanded as higher demand
is generated.
Vision statement: Premium products for the local
country: our brands
withstand the test of time.
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Cost Leader Concentrate primarily on the
Low Tech segment in only one
country (local). Competitive
advantage is gained by keeping
R&D, production, and raw
materials costs to a minimum, enabling the company to
compete on the basis of price.
Prices are below average.
Automation levels are increased
to improve margins.
Vision statement: Reliable products for low technology
customers in the local region: our
brands offer value.
Maintain a presence in both
segments (broad) of the
market in only one country
(local). Note: For the purpose
of this project, the market for
the company’s products could be different from
where the plant is located.
Competitive advantage is
gained by keeping R&D,
production, shipping and raw
materials costs to a minimum, enabling the
company to compete on the
basis of price (cost leader).
Prices are below average.
The Plant Automation level is
increased to improve
margins. Any international selling must be done with an
eye on margins, first and
foremost.
Vision statement: Low priced
products for the local
country: our brands offer solid value.
KTSDESIGN / Science Photo Library / Getty Images
Global
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Niche Broad
Differentiator Focus on the high-tech segment
across two or three countries.
Competitive advantage is gained
by distinguishing products with excellent design, high awareness,
easy accessibility, and new
products—any of which may be
tailored to the individual local
market’s needs. R&D competency
is developed to keep designs
fresh and exciting. Products will keep pace with the market,
offering improved accuracy and
speed. Tailoring products with
specific region kits is considered.
Prices are above average.
Regional and product branding and sales efforts are given a
larger budget to work with.
Capacity is expanded as higher
demand is generated.
Vision statement: Premium,
tailored products for technology-
oriented customers across the globe; our brands define the
cutting edge.
Maintain a presence in both
segments of the market
across two or three
countries. Competitive advantage is gained by
distinguishing products with
an excellent design, high
awareness, and easy
accessibility. R&D
competency is developed to
keep designs fresh and exciting. Products keep pace
with the market, offering
improved accuracy and
speed—and sometimes
tailored region kits. Prices
are above average. Regional and product branding and
sales efforts are given a
larger budget to work with.
Capacity is expanded as
higher demand is generated.
Vision statement: Premium
products for the industry across the globe; our brands
withstand the test of time.
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Cost Leader Concentrate primarily on the low-
tech segment across two or three
countries. Competitive advantage
is gained by keeping R&D costs, production costs, and raw
materials costs to a minimum,
enabling the company to compete
on the basis of price. Prices are
below average. Regional and
product branding and sales
efforts are below average. Automation levels are increased
to improve margins.
Vision statement: Reliable
products for low technology
customers across the globe; our
brands offer value.
Maintain a presence in both
segments of the market
across two or three
countries (global). Competitive advantage is
gained by keeping R&D
costs, production costs, and
raw materials costs to a
minimum, enabling the
company to compete on the
basis of price. Prices are below average. Regional and
product branding and sales
efforts are below average.
The plant automation level is
increased to improve
margins.
Vision statement: Low priced
products for the industry
across the globe; our brands
offer solid value.
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