Strategic Management and Competitive Advantage

Question: Discuss about the Strategic Management and Competitive Advantage. Answer: Introduction The following report aims to cover the marketing strategies adopted by Uber cab service and Qantas airlines. The two firms have built a good position in their respective fields are considered to be among the leading players in their respective industries. While them both hold positions of power in their fields, it is important to notice that their marketing strategies have played an important role in their success stories. Marketing is important for any firm as it is the factor that helps them reach out to the target customer base and the firm makes its presence felt among the potential customers as well. As a result, it is important for us to take a look at their marketing strategies that they have employed the years. The analysis of the marketing strategies would also help us to understand what possible future directions the firm might take in order to increase its customer base. Uber case study One of the primary strategies of Uber has always been the word of mouth policy that they have ued to their advantage. Although the company has faced several problems in terms of consumer experience through the recent years, it can be seen that it has not affected the business of the company(Barney and Hesterly, 2006). In fact, we can see that the firm has in fact grown beyond what was expected and is in fact continuously growing. Uber initially involved Silicon Valley employees in their initial stages. After that, the company provided services to the employees in a manner that they would get the word of the service around(Cadogan, 2009). This helped them in a big way as it helped them understand the requirements and preferences of the customers. An understanding of these factors helped in the formation of an effective marketing strategy. Qantas case study Qantas is the flagship company of Australian aviation industry. The brand is the most popular brand in its home country but is also gaining much popularity all over the globe. Qantas is also the most valued and the largest carrier service provider in terms of international flights, fleet size as well as international destinations(Ferrell and Hartline, 2005). Qantas has a 65 % of the total market of Australia and has been able to achieve all of this through their very effective marketing strategy. Their marketing strategy has always been that of creating a brand value and they have utilized the advantage of connecting with the Australian customer base on an emotional level. Also, they constantly update their services in order to meet the customer expectations and keep up their brand value(Gerzema and Lebar, 2008). Also, they have utilized a strategy of competitively pricing their services in a manner along with advertising the same to the customers. This has helped them get hold of a giants share of the market. Marketing Success Evidence Uber employed a strategy of getting their word around through their various offers and other activities. They involved Silicon Valley employees in the initial stage who were always looking for newer solutions to their problems. As a result, when they benefitted from the new service, they got the word around which worked in the favour of Uber. Also, Uber promoted their brand through various offerings and associations(Luther, 2001). For example, the introduced a policy of giving away points to users when they referred the service to their friends. This acted as a catalyst in getting the word around. While the customers referred the service to their friends and associations, they were benefitted themselves. However, they also worked as the brands advertisers unconsciously. The results of this strategy are quite evident as Uber is currently the largest service provider in this field. Uber is also one of the earliest of these ventures but still keeps a competitive edge over the others. Th is is because as Uber has built a brand value for itself, it is one of the most sought after brands in this regard. This is proof of the fact that the marketing strategy of Uber has been successful in achieving its goal(Paley, 2007). Qantas, on the other hand, has utilized a strategy of connecting with its customer base on an emotional level. Similar to Uber, Qantas faced issues of security, consumer satisfaction among others. However, the airlines established itself as a company that captures the spirit of Australia. This helped the company to connect with the customers on an emotional level. This also helped the company become Australias flagship airline carrier. The attributes and benefits of Qantas are designed in a manner to satisfy their target customers. The prices of their services range from low to high. In such a case, they have not only a competitive advantage, but they also cater to all the economic classes(Richter, 2002). In such a case, the brand value of the airline i s also maintained. The brand value has worked to such an extent that most customers preferred Qantas even after they faced the issues which would have put any other airlines in jeopardy. This was because of their emotional connection. The way they connected with their target customer base was so intensive that the customers felt that the flagship carrier of their nation was something to always be proud of. Qantas exploited the Ansoffs Matrix in its marketing procedure. The market penetration is one of the most important factors in the case of Qantas. Qantas utilized the process of connecting on an emotional level to gain hold of the Australian market across all kinds of customers. Also, the penetration helped it create a brand image for itself which helped it gain foreign customers as well. The product development that followed it was that Qantas provided best in class service which also differentiated its products as there was no other carrier that could provide such a service at s uch low prices. This helped it in capturing and keeping hold of the market. Analysis and explanation The most important part of Ubers strategy is the utilization of promotion by word of mouth. In this case, Uber utilized various schemes to its customers and the kind of associations with various events that led to it growth in various fields(Van der Westhuyzen and Van der Merwe, 2001). Also, Uber used the ideas of free first rides and the concepts of points on every referral. This helped Uber involve the Customers in the promotional activities. Uber in the meantime, also began improving its customer experience which made it popular among the users and added to its brand value. The referral strategy thus helped the brand get hold of a lions share in the market. After that, Uber also created a review system that helped it in gaining a positive outlook. In its initial stage, Uber took great care in its services to the customers. It also included a review section where the customers could post their opinions regarding the experiences. As a result, the positive reviews about the brand hel ped them create a brand value for themselves(Walker, 2006). This helped them in gaining a positive approach from the potential customers as well who would decide to use the services. Uber also utilized special offers for the customers in its initial stage. The special offers would help them differentiate their services from the other service providers. Thus helped them gain a lot of enthusiastic customers which again gave a boost to their business(Wood, 2005). Also, one of the facilities offered by Uber include the loyalty programs that they offer. Uber VIP is one such feature where they provide special privileges to customers who have taken more than 100 rides. As a result, this has helped them gain loyal customers as well. Uber segmented its customers in an interesting manner. While Uber primarily targeted urban tech employees, it then went on to include other urban customers as well. The strategy involved here was to provide a solution that was easy for anyone with a smartphone to use. In such a case, the penetration also had a higher potential. As a result, Uber lost no opportunity and went ahead with aiming to make their services available to everyone, the marketing segmentation thus went up from the tech employees to all the city dwellers. Qantas aims to retain its customers as well as gain new customers through the relationship it builds with its customers. This is because, Qantas aims at building relationships with its customers by providing them with the best services possible. Also, Qantas has built a brand name for itself which is again an important tool for attracting customers. The brand name has been built over the decades that it is active in the aviation industry and the world class service that it has provided to its customers. This brand name marks it as one of Australias biggest carriers(Westwood, 2011). The brand name thus created helps it to gain foreign customers as well. This is because the foreign customers would immediately identify the name of Qantas as soon as they decide for an airline in Australia. Qantas also utilizes a strategy of competitive advantage over its rivals. Qantas achieves this by keeping note of its rivals actions and utilizing that information to formulate strategies of its own. The strategies thus formulated include keeping track of the pricing of the rivals and pricing their services accordingly(Wood, 2003). This is just a part of their overall strategies that cover the competitive advantage that they possess over the others. Conclusion From what we have found from the case studies, it is quite evident that Uber and Qantas have made a place for themselves among the industry giants. The reason for this is purely their intensive marketing strategies. It is their marketing strategy that keeps them ahead of their competitors and helps them capture the market. Capturing the market is a combination of a lot of factors and these two brands have utilized those factors in the best combination which gives them the advantage over the others. While Uber has utilized a strategy to get the word around, Qantas has focused on forming a brand value for them. What is common between these two companies is that they have laid stress on their quality of service which would ultimately help in capturing more and more customers. 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