Answer to Question #318059 in Management for judge4

Question

A pharmaceutical company is running an offline store and also have good customer base. Company faced lots of challenge due to online pharmaceutical players. Online medicine delivery is a new concept in the industry, and customers are accepting this business model slowly.

a. Explain the existing situation of the firm considering the industry life cycle.

b. Explain different competitive advantage that helps a company to get a better market share in the market. 

Answer 1

a) The existing situation of the firm is at the development stage where it has engrossed attention from a better market section, the business changes on to the growth stage where success twitches to rise. Enhancement in product sorts upsurges the value to clients. Corresponding products likewise jump to become obtainable in the marketplace. Consequently, persons have superior benefits from buying the product and its accompaniments. As demand upsurges, product charge goes down, which additional upsurges client demand. At the development stage, revenue endures to rise and businesses start creating positive cash drifts and profits as produce revenue and charges exceed break-even. At this glassy, the business is vexing to rearrange itself and arise with new science and technologies to make it modest in the market to have marketplace share.

b) Competitive advantages are credited to a diversity of factors comprising the quality of product offerings, cost structure, the distribution network, branding, intellectual stuff, and customer service. Competitive advantages create superior value for a company and its stakeholders due to definite strengths or circumstances. Therefore, the additional sustainable the competitive advantage, the extra difficult it is for competitors to counteract the advantage.