helen mba _2 - Nelson Mandela Metropolitan University

difficult if the organisation competes in different market segments, withdifferent needs.• A focus strategy may conflict with stakeholders’ expectations.• The advantages of a focus approach have to be carefully monitored, becausethe market situation may change. Differences between segments may beeroded, leaving the organisation open to much wider competition.2.7.1.6 Failure strategies – routes six, seven and eightJohnson and Scholes (2002:330) conclude that strategies suggested on routes six,seven and eight are destined for failure. Route six suggests increasing the pricewithout increasing the value to the customer. This is the strategy that monopolyorganisations are accused of. Route seven involves the reduction in value of aproduct or service, while increasing the relative price. Route eight, a reduction invalue while maintaining price, is also dangerous. There is a high risk that competitorswill increase their share substantially should an organisation follow route six, seven, oreight. There is another basis of failure - a strategy that ends up being stuck in themiddle.2.7 SUMMARYThe first sub-problem, regarding the competitive advantage of a product or servicehas been addressed by research on Porter’s diamond on national competitiveadvantage, and the forces that influence competitive advantage. The importance ofcreating and sustaining competitive advantage has also been addressed. Porter’sdiamond provides the basic factors that contribute to an organisation’s competitiveadvantage. Chapter three looks at factors that contribute to the competitive advantageof the intermodal industry in the Nelson Mandela Metropolitan Municipality.76