Q. Consider case for kindercare learning centres.

what do it do right and what

mistakes did it make?what corporate strategy it should be following?
Ans. Kindercare established a solid reputation by establishing day care service in
quality manner.It was following differentiation strategy apart from lower cost.The
company competitive strategy became successful thorughout United States. The
company biggest mistake was that it changes its growth strategy of horizontal
growth to concentric diversification rather than conitnuing growth in day care
services the company moved into banking,insurance and retailing business.management
thinking probably revolved into idea that once comapny obtained trust of well off
parents it should sell them family oriented products like insurance and children
clothing not on financial services.the company distinctive competency was more on
day care rather than on financial services.the company had not lost its capability
to provide quality day care services and its key differentiation strategy
continued use of horizontal growth and it seems appropriate. In this way Kindercare
could provide access to potential customers and partners could provide the
management expertise.

Q.Do you think Federal Express will succeed in using its information system
functional expertise to obtain a competitive advantage with in its industry?
A core competency is something that a corporation can do exceedingly well.it is key
strength.when these competencies are superior than competitior it became
distinctive competencies.In general more core competencies are used the more
refined they get and become valueable.core competencies consist of three tests:
1.customer value
2.competitiors unique
3.extendibility
customer value: it must make a disproportionate contribution to customer percieved
vale.
competitiors unique::it must be unique and superior than competitior product and
service.All companies were providing same product.
extendibility: company must establish new product or servie and Fed-ex has no
potential
Fed -ex have core competency in information system technology .Experts have doubts
on business links that it has percieved customer value although it does not have
potential to establish new product or service.Ups,Microsoft and At&t also
providing same product or services.Fed-ex is better thab Ups.Fed-ex attempt to go
high on its own and it was difficult.It should make strategic alliances with
computer software companies to carry out its operations