Posted: May 17th, 2022

Porter’s Four Competitive Strategies and FM Analysis

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Porter’s Four Competitive Strategies and FM Analysis
1. List and describe Porter’s Four Competitive
Strategies (p. 41 – 41, section 2-3)
2. Choose one company in any industry and identify
their competitive strategy. For example, Bugatti
focuses on wealthy customers who are looking to
drive something different from the other car
offerings; they can charge higher prices to a specific
niche. I would say that Bugatti falls within the lower
right quadrant of the competitive strategies being
both focused and differentiated.
3. Using the company that you chose for point 2,
identify a RFM score for a theoretical customer and
explain the reasoning for the score. For example, I
would say that someone that just purchased a Bugatti
(trading in their 10-year old car), would have an RFM
score of 5, 1, 5. This would indicate that there was a
very recent purchase, the purchaser does not
purchase frequently (using the 10-year trade-in as
the indicator), and the customer spent a lot of money
(in the top 20% of sales).

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