What are the challenges of implementing a hybrid strategy? Companies such as Primark successfully implement this by combining discount price with fashion appeal. (cheap-chick) Design a hybrid strategy to enter another market such as restaurant or cosmetics. What challenges would you face and how can you build SCA in that market?Hybrid strategy is the using of a differentiation strategy that is used by copying certain tenets of the competitor’s business methods and incorporating with the unique service models of the company. In these cases, the consumer face a great risk of the company.
For example, to set up a cosmetic company in a newer emerging market such as India, there must be certain cultural factors and utilization of the existing ideologies regarding beauty in order to make a particular point. On this occasion, it is imperative to have a cost based threshold requirement for the companies to sustain. This is to ensure that there is a basic cash flow into the nation in order to sustain. By having a broader differentiation strategy, the company will benefit from the operations (Galliers and Leidner, 2014 ). And the company would face the risk of consumer changes or preference.
For the cosmetic industry, the model that would be used is the market based model would balance with the resource based view in order to reach the organizational requirements for the companies. The expected challenges that would occur in this system are that people already have a number of products in the market with similar product offering. A niche consumer base needs to be created. This can be costly and time consuming. These can impact the progress or growth of the company and the issues of sustenance become evident in this model. The company should have a differentiation strategy to meet the minimum requirement. This is not ideal for all the companies. It is however difficult to maintain the differentiation for the company within the indefinite amount of time given size of the competition. Many of the companies fail owing to the fact that they are not able to develop a proper coherent differentiation strategy. To overcome these issues there must be a balance of the price, quality and service offering by the companies. They should ensure that the combination of attributes is achieved by the company. There must be unique product rendering to make the product seem attractive to the particular crowd. The companies might enjoy higher sales and develop the one that is based on the differentiation strategy. There are integrated or consolidated challenges that the companies must face given the situation. This is completely different in the case of the restaurant businesses. The companies offer unique fragmented services that cannot be pinpointed towards any one trend. These cause an increase in developing the appropriate tenets. In these cases, there is a need to develop a balance between the elements in order to achieve the required paradigm.