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APPENDIX 1 – COMPETITIVE STRATEGY

Competitive Advantage

Differentiation Low Cost

Competitive Arena

Oz Trendz
Stoneybrook

Focus

Source: adapted from Porter

Oz Trendz after deep study and analysis adopted the source of differentiation in product and
services, within a focused marketplace. It tries to provide the quality, speed processing and
affordability of its offerings to the customers:
- Quality: Providing the best quality products and services with the useful features on the
website that can be easily updated and navigated. It is one of the competency of Oz
Trendz within the IT area.

- Speed: Proactive in assessing and analyzing the market competition through the
prevailing marketplace knowledge and contacts from different online portals. This

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marketing information and changes is helpful in bringing new products and services to
the market on time.

- Price: Pricing strategy of Oz Trendz should suits the existing market and fairly compete
against competitors, new entrants and existing player. This will create a high and regular
cash flow and also lower down the business administration and overheads cost.

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After analyzing the positions on the strategic cock above, the niche market and lack of direct
competitors suggests that the center position would be average quality and average price
concerning advertisers. For example, some portals offer free advertising, whereas advertising in
fashion magazines is extremely expensive.

Switching costs are negligible for end-users browsing websites, however it is hoped that “sticky”
content will encourage Internet users to spend time on Oz Trendz website.

Oz Trends hopes to hold a “value” position in the eyes of advertisers (and end-users),
representing a point of affordable cost and high quality product/services/delivery. Thus
advertising will not be free, which may represent discount brands, nor will it be high,
representing premium brands and thus seeks to avoid competing on price among direct
competitors.

Oz Trends should create an information rich, valuable website and instigate an effective pricing
strategy, supported by high cash-flow/profits and low administration/overheads. Further, focus
should be on client relationship building, keeping the website content up to date and seeking
continuous product, service and process improvement. This should provide Oz Trendz with the
ability to produce quality products/services to promptly meet market needs and maintain
customer loyalty, whilst representing value to end-users and advertisers.

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References

 www.peppermayo.com.au
 https://www.humanrights.gov.au/guide-australias-anti-discrimination-laws
 Porter, Michael E., Competitive Strategy: Techniques for Analyzing Industries and
Competitors.
 Philip Kotler, principles of Marketing, 2013