Business Definition
Lewis and Mac can be viewed as the major competitor of Hudo Pharmacy. This company also operates in the cold drugs market. This organization occupies very strong positions in various regional markets such as North, South, and East.
On the whole, this organization serves the needs of customers who are extremely price-sensitive. The financial performance of this company can give it sufficient resources for becoming a dominant player in various markets. These are the main details that should not be overlooked.
Source of Competitive Advantage
At present, the competitive advantage is based on the ability of the company to differentiate its products in terms of price. At present, the products of this organization cost only $ 2. In turn, Hudo Pharmacy sells its drugs at $ 2.50. In contrast, the prices set by other businesses are usually higher. This is why many consumer groups prefer to buy the products of Lewis and Mac.
Strengths and Weaknesses
The main strengths of Lewis and Mac are related to the productive efficiency of this organization. They can reduce the cost of manufacturing and distribution to the minimum. More importantly, there are many consumer groups for whom price is the most important criterion. Certainly, there are many buyers who attach importance to the effectiveness of the drug and brand image. They do not usually buy the products of Lewis and Mac.
Nevertheless, the strategy chosen by this business enables it to occupy leading positions in the market because price-sensitive clients constitute a significant part of the target audience. This is one of the reasons why the revenues of this company grow significantly. Nevertheless, there are some weaknesses in this organization. For example, the drugs sold by this company are inferior to the products of competitors in terms of effectiveness and the speed of action. So, it can be exploited by competitors. For example, Hudo Pharmacy should invest in R&D to improve the quality of drugs that it sells. Provided that this goal is achieved, the products of Hudo Pharmacy will be viewed as a better ratio of price and quality even by people whose income level is not very high. These are key issues that can be distinguished.
Self-Analysis
It seems that the management of Lewis and Mac can view Hudo Pharmacy as a potential competitor. In particular, they may think that Hudo Pharmacy can win the loyalty of price-sensitive buyers in the long-term. The major weakness that they can exploit is relatively low effectiveness of the drugs sold by Hudo Pharmacy. The senior executives of this business may believe that Hudo Pharmacy may not be able to reduce the price of its goods. Moreover, this competitor has sufficient financial resources to improve the quality of its products. This is one of the issues that should be considered.
Strategic Assumption
In the next three years, Lewis and Mac will make a considerable investment into R&D in an effort to raise the efficiency of drugs. Furthermore, they will try to make sure that the price of its products does not rise dramatically. To respond to this challenge, Hudo Pharmacy should consider the needs of those clients who value both price and quality. This approach can help the company increase its customer base in the future. These are the main options that can be adopted.