You are a budding entrepreneur and hold an eye for spotting opportunities as soon as they come up. Recently, there has been a considerable increase in demand for designer clothes and numerous people are coming up to offer unique and quality products at affordable prices.
You have also noticed that there is an increase in online shopping as more and more people from all over the world are getting easy access to cheaper and innovatively designed products.
You want to pursue this opportunity and going to setup your clothing store providing reasonably-priced, trendy and distinctive apparel for the female segment of the market. However, you would like to be different and offer value for price to differentiate your product from that of your competitors.
Now, as an entrepreneur, you are faced with a dilemma of whether to start an online store, which will be globally accessible, or to build a brick-and-mortar company where mostly local customers can visit and actually get a feel of the products being offered.
What would be your strategy? Discuss in the context of external environment.
Idea Solution 1:
I will start this business online because I can access international customers as well as local and online shopping is a new trend in the world people just order and get their product at their homes easily instead of going outside in the market and search a product and spend a lot of time while online they can search in just few minutes and they can also search many of the competitors product as well and will buy the product which is low in cost and good in quality and I will do the same keep the cost low and sale the better quality.
Idea Solution 2:
Applying ideas about strategy to the not-for-profit world, which were created in the for profit world, needs to be done carefully. Clear difference in these types of organizations exist, one signefficient difference between for-profit and non-for-profit entities is how they each determine there effectiveness, While a wide variety of perspectives exist on nonprofit effectiveness, and it has been well argued that effectiveness is “socially constructed” (Herman & Renz, 1997, 1998, 1999), nonprofit effectiveness is often thought of in terms of mission (Sheehan, 1996) while for-profit effectiveness often focuses on “profit” and/or shareholder value (Smith, 1999 & 2004).
So, while for-profits may be mostly focused on ways to “outperform rivals” (Porter,
1996, p. 62), not-for-profits can be thought of as focused on “mission accomplishment”
(Sheehan, 1996). While there may be exceptions when a competitive mind-set is appropriate for a nonprofit to consider in developing strategy, most do not take this approach. In utilizing strategy concepts in nonprofit organizations, most practitioners, consultants, and authors use various strategy tools – while purging the ideas of “outperforming rivals,” growing shareholder value, and competition – from the process.
But if, those competitive drivers are purged, what is used as a replacement?
This paper argues that the replacement “driver” for competition in nonprofit organizations should be a new concept called “mission gap.” It is the foundational concept of a new model of strategy, described in the next section, which truly captures the essence of the difference between the for-profit and nonprofit sectors.DOWNLOAD SOLUTION HERE