Tyrrells Crisp Business Essay Example | Topics and Well Written Essays - 2500 words

Tyrrells Crisp Business - Essay ExampleAnd for there to be success with customers or Market, there has to be a clear competitive advantage. A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of cut down termss or by providing greater benefits and service that justifies higher prices.2 What argon the strategies which provide this competitive advantage Following on from his work analyzing the competitive forces in an industry, Michael gatekeeper suggested four generic business strategies that could be adopted in order to gain competitive advantage. The four strategies relate to the extent to which the scope of a businesses activities are narrow versus large-minded and the extent to which a business seeks to differentiate its products The differentiation and cost leadership strategies seek competitive advantage in a broad range of mart or industry segments. By contrast, the differentiation focus and cost focus strateg ies are adopted in a narrow market or industry. We will analyze in this case study how Tyrrells utilized each of these business strategies to gain a competitive advantage.Strategy 1, Differentiation This dodging involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. This strategy is commonly associated with charging a premium price for the product - often to reflect the higher production costs and extra value-added features provided for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products. Now how are Tyrrells Chips different. In ordain Chases own words Its not rocket science. Were only chopping up spuds. But there a few differentiating factors which have made a very salubrious impact in the customer mind. They are called chips to d ifferentiate between the thick-sliced, hand-fried delicacies and the cheap as, crisps alternative. But it is more than that Its not just the quality, the packaging, or the paper. It is all of them combined .The Tyrrells story - from field to fryer in the same day - has found an audience in the small but growing number of consumers who want to know the place of birth of their food and are willing to pay 85p for a packet for the freshness. Tyrrells uses its own produce and bans additives or pesticides. Rather than rinsing out the starch, the company fries plenteous slices in sunflower oil for an all natural snack. Its 12 flavors - from the no-salt Naked Chips to Smoked Salmon Horseradish and Capers - do not contain GM ingredients. Tyrrells aims to be certified organic in 20 months time. All of these things create a Niche market of Customers who want fresh environmentally friendly and healthy snack.Strategy2 - hail Leadership With this strategy, the objective is to become the lowes t-cost producer in the industry. Many market segments in the industry are supplied with the emphasis placed minimizing costs. If the achieved selling price bum at least equal the average for the market, then the lowest-cost producer will enjoy the best profits. This strategy is usually associated with large-scale businesses offering standard products with relatively little differentiation that are