Top five best business strategies 1) Amazon:Cost leadership strategyAmazon’s overallbusiness strategy places a strong emphasis on accomplishing a leader role inthe e-commerce world and developed a cost leadership business strategy.1Beginning in the online book industry, Amazon saw an opportunity early on inthe e-commerce world. Amazon noticed that there was a greater opportunity forthem to sell other things, besides books, on the Internet, and sell directly tocustomers. They have become a top online competitor and still prove to be anextreme competitor in e-commerce. 2 In2017, Amazon verified their dominance through their cost leadership strategy.
Amazon obtained a competitive advantage by improving efficiency and decreasingcosts.3Amazon is constantly improving technology to keep up with today’s retaildemands and investing heavily in Research and development to improveperformance.4Through an indestructible technological front, heavy R&D, and determinationfor low costs, Amazon has upheld their position as the top competitor to beatwith the best business strategy.2) Johnson& Johnson: Differentiation focus strategyJohnson &Johnson developed a differentiation focus strategy because of the priority theyplace on their customers first and foremost and create their products with thecustomers’ best interest in mind. Their main focus is pharmaceuticals anddifferentiates themselves within the pharmaceuticals market. Johnson has one of the best business strategies because they are constantlyinstructing R efforts to improve the health care industry. With scienceconstantly evolving and many changes in the world, Johnson & Johnsonthoroughly look to improve and grow in their industry.
5Johnson & Johnson also always has their customers as their top prioritymaking them one of the companies with the best business strategy in 2017. Allcompanies care about their customers, but Johnson & Johnson goes above andbeyond to ensure their customers stay safe and healthy.6 3) ToyotaMotors: Cost leadership; differentiation strategyToyota Motorsbears a cost leadership business strategy because they are constantly trying todiscover new ways to be cost efficient and decrease costs for their customers.7Toyota also fall within the differentiation strategy scope because they lookfor ways to make their products stand out and differentiate themselves fromtheir competitors.8Toyota has one of the best business strategies because they takedifferentiation to the next level, while also creating competitive pricesthrough their Just-in-Time manufacturing method. Toyota also stands out becausein their new methods and new general world revolutions, they are looking forwhat is environmentally friendly and how to better contribute to a safer and lesspolluted world. 4) Microsoft:Differentiation strategyMicrosoftimplements a differentiation strategy in order to gain a competitive advantagebecause the products introduced to the Microsoft storefront contains differentsoftware, products, and designs that are focused primarily on the averagebusiness organization.9Microsoft also prides them on “product innovation.
“10In 2017, Microsoft planned to incorporate Cloud service and virtual reality-virtual reality being their main concentration.11 Microsoft is pinning down what they believethe future will consist of in terms of technology and perfecting those productsto develop more of a competitive advantage.12 5) AT:Cost focus strategyAT has notbeen a leader in the telecommunications sector, but they did not let thatdiscourage them. AT developed a cost focus strategy because they aretrying to be cost leaders, but are still trying to find cost advantageswherever they can. 13Inorder to do so, AT needs to increase their sales and become a front-runner.
They have one of the best strategies because they are now attempting to expandinto other areas where they know they are lacking. Their biggest step is toacquire Time Warner and break into the entertainment industry. By merging with Time Warner, AT canincrease their revenues.14 Top five worst business strategies1) IBM:cost leadership strategy IBM maintains acost leadership strategy because their goal is to decrease prices to increasesales. From this then they hope that there will be a spike in revenues and maketheir products more appealing to customers.15Though IBM strategically uses outsourcing and global expansion to theiradvantage in reducing costs, IBM has not accomplished much besides reducingproduct costs. They do not seem to be growing their product list besidescomputer hardware and software.
16They are not taking strides that other information technology services take,leaving them to fall behind and always be a step behind their competitors. 2) Samsung:Cost leadership strategySamsung has comea long way in the past few years. They have increased their revenue due totheir Galaxy series and have reduced many of their costs as a result of theircost leadership strategy.17While they seem to be improving, they are still not market leaders or costleaders. Their strategy in 2017 is to improve their smartphone and improvemarket leadership, but is not pursuing any future technological products suchas virtual reality.18They are incorporating artificial intelligence into their smart phones, butthey are not nearly where they should be in today’s market. Their main strategyis to continue with their smartphones and improve their touch pad, but theirstrategy does not seem to push them further.
3) FordMotors: Differentiation strategyFord Motors beganwith a cost leadership strategy in that they wanted to reduce their costs tomake themselves more attractive. They’ve since strayed away from costefficiency and looked for ways to make their products different in theautomotive industry. 19As new auto companies came into play, Ford realized the extreme competition andlooked for new ideas. Ford’s business strategy in 2017 was not the beststrategy because their main focus is redesign. Their redesign process wouldalso include improved technology, but they are not as focused on other factorssuch as environment or pollution. While Toyota focuses on the negative effectscars have in general and working on fixing them, Ford is coming up slowlybehind them trying to catch up.
20Improvements are included in their business strategy, but they are not theleaders anymore. 4) Verizon:Differentiation strategyVerizon has manyproducts that differentiate themselves from competitors.21Verizon has excellent quality and have expectations to expand their wirelessnetworks from 4G to 5G, being the first in the telecommunication services. Since they are continuously trying todifferentiate themselves, their prices skyrocket incredibly as compared tovarious competitors. To stay differentiated, Verizon needs to consistentlyincorporate and improve them to stay a step ahead. This affects their pricesmaking it unattractive to some customers.22Verizon’s business strategy reinforces their reliability, but does not helpprices that customers are ultimately going to have to pay, which should be oneof the main priorities for a service company.
5) Coca-Cola:Differentiation focus strategyCoca-Cola is abrand that has been around for a long time and is a name that customers grew tolove and trust. They have a strong marketing campaign and loyal customers, buttheir 2017 business strategy does not include current world problems such asthe effects of sugar or the correlation between soda and obesity.23 Coca-Coladoes not have that strong of a strong focus on these important current issues,which will ultimately have an affect on their total revenues and profitmargins. Thecompanies on the top 5 best business strategies made the list because theirbusiness strategies incorporated a desire for growth, an aptitude for expansionand new ideas, and the capacity to have their customers as their number onepriority. Companies like Amazon and Toyota have developed strategies thatdifferentiate themselves from others because they differentiate their marketsand they look towards the future and see what they could do to better thefuture. These priorities have built these companies up into big companies thatare difficult to compete with.
Thecompanies on the top 5 worst business strategies were on this list because thesecompanies were either too behind in this rapidly moving technology era, did notdifferentiate their product enough, or was focused on one strategy but did nottake into consideration the changing time. When a company’s business strategylacks diversity or seems to be moving in a linear slope, the company willdecrease in value and will struggle to grow.