WIN-LOSE STRATEGY:
According to this strategy, others will loose in order for you to win. This is what almost all companies are doing. Let’s just put it in the example of Packages. What packages can do is that it can sell its packing material on for example 10% discount on an order of 100,000 units. In this way its sales will definitely increase and competitor like Pak paper will suffer. This is how Packages can win and its competitor loses.
WIN-WIN STRATEGY:
Correct me if I am wrong, the way to win is to let the competitors do well. Almost no one believes in this strategy, but it can be a great success. Let’s apply this strategy to Packages. Packages is a market leader having almost 40% of market share. Despite of having a great capacity to produce and three shifts of production per day, it can not accommodate all orders of its customers. What it can do can do is ask its customers that if they allow Packages to get the order prepared from any other producer of the same quality. If agreed get it prepared by competitors and charge 2% on each order. This will definitely be a win-win strategy and the competitors will surely not retaliate because both will win.
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11 comments:
Asim dont you think if the vendors other then pakages can do such a high quality work buyers will go to that vendor directly..... and if Pakages sotp doing work in shifts they will have to bear very high fixed costs.
their is no such vendor who gives the same quality in Pakistan.That is they it is a market leader....and Packages despite of having three shifts can not carter all order.i am talking about those orders.
packages is well known and a giant packaging company who holds almost 40% market share so whatever they do that is always maximizing their profits it does not matter.
I completely don't understand you.Can u please explain what r u trying to say.
@ASIM
this win-win strategy can be applied but what will happen if customers do not agree? and is it really necessary to tell customers about this? i think if customers will get good quality close to Packages,they will not have any problem.
All looks fine but why the Packages customers will pay 2% extra to Packages. They can directly go to other vendors and if high quality is Packages competitive edge. How does Packages assure that high quality product from the competitors so that Packages can sell this product to its customers.
@Babar
agree!
if this happens then customers will directly move towards other vendors providing good quality.In this way,Packages will lose its customers and it will again become a Win-Lose strategy.
Hira and Babar it is because they will get packing at the guarantee of packages,see their is still an involvement of brand image of Packages.Further answering to the first question of Hira without the mutual consent of their customers they will surely not pass orders to any other producer and please read the blog first it is written over there.
ohk asif! i got your point but suppose customers do not agree on this then what will be the strategy of Packages because the problem of fulfilling customers orders is still not resolved.
Hira u need to meet me in uni so that i will have plenty of time to explain each and every thing to you. Thank you
Guys can u both please tell us what did u get finaly after this hot conversation on blog and hope so in uni as well. what are the final words? none of you make us aware of that. so that we can enhance our knowledge.
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