managing competition and profitability

You are the CEO of Company A, a profitable market share leader employing a best-cost provider strategy.

However, you are now facing significant competition from Company Y (broad differentiation), and Company Z (low-cost provider).

Over the next 12 months, you cannot change your generic strategy.At the same time, you cannot wait a year to deal with the growing threats from Company Y and Company Z.

• Discuss the challenges facing Company A that stem from having to compete against both Company Y and Company Z.
• Identify at least two positioning strategies that will enable you to strengthen your competitive position with Company Y and/or Company Z.

At least 1 must deal with Company Y, and at least 1 must deal with Company Z.

You must explain how each option is consistent with your best-cost provider strategy and how each option will enable you to maintain or increase profitability and/or market share.