Competitive Review of XYZ Company Paper Example

Paper Type:  Essay
Pages:  4
Wordcount:  901 Words
Date:  2022-06-20


The main competitors of XYZ company include Legrand, Schneider Electric SE, Honeywell International Inc, Schneider Electric SE, Siemens AG, and United Technologies Corporation. These are well-established businesses, and they have excellent reputations. Unfortunately, they offer inferior quality and services which make XYZ a better company. The location of some of the companies like Schneider Electric SE is inconvenient that makes XYZ Company more convenient firm in terms of location. The pricing of XYZ is higher than the other companies which make most of the customers to resolve to purchase items from the other companies (Armstrong & Kotler, 2016).

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XYZ Company is planning to introduce new equipment to help it compete effectively with the other competitors. Unfortunately, it may result in high competition from the online competitors. Therefore, the company will have to compete with the new product retailers using targeted marketing and personalized service through the existing customer base and specifically through online initiatives (Ambat et al., 2017). The presence of the competitors in the international market for an extended period is their most significant advantage against XYZ company (Scarborough, 2016). However, the company the threat of having new entrants in the market and especially in the same state as it will make it difficult for the company to operate efficiently.

Channels and Logistics Review

The products of XYZ company will be distributed through retailers. This mode of distribution is the best since it is cheap, better, and faster as compared to the other options. However, some business partners will get the chance of getting the products directly. The company users retailers and distributes its products directly to some partners because it improves communication in the organization.

The use of the above distribution methods of the new product at XYZ Company will also increase transparency in the supply chain of the company (Armstrong & Kotler, 2016). There will also be improved customer satisfaction since the product will not pass through many intermediaries that may make the product to reach consumers in unpleasing condition. Using the two methods of distribution are also significant since they reduce the cost that would have been used if many intermediaries were involved. It is the use of this distribution that made the product cheaper as compared to what XYZ competitors sell it. Improvement of efficiency will also be due to the use of retailers as the primary distributors. The last advantage of using retailers and partners to distribute products is on time delivery.

Marketing Strategy


Pricing of a product is challenging, and it is the most significant profit lever. The product price of XYZ Company will be 95% as compared to the competitors. Lower price for the new product than the competitors is a reflection of affordability which then attracts retailers and consumer partners of XYZ. The other products and services that XYZ offers are higher in terms of prices which makes the new product unique to the company. Furthermore, the current environmental condition and trends match the company's pricing strategy for the affordable and cheap product. It is an indication that price loyalty is more efficient than brand loyalty.

The company also has different instruments it utilizes and has been adopted to get the best gross profit. The company also conducted a market search to ask the customers if they would be willing to buy the new product at the stated profit. Most of the customers agreed that they are willing to but the product at the stated price because the product is good with regards to quality and can be used instead of other products which are expensive. The company conducted a telephone survey of about 400GPs. Therefore, the company decided that the cost of the new product will be at $400 excluding the VAT. However, the price can be reduced if there is a need.

Distribution Strategy

The distribution of XYZ company will be mainly focused on the positioning of its product. The main retailer of the company will play the role of distributing the new product to the market. Moreover, the firm will emphasize increasing its distribution capacity of the logistic channels and even open more stores nationwide (Scarborough, 2016). It will ensure that the stores are in both the urban and rural zone. Through this, more people will be able to get the XYZ company's product irrespective of their location. However, the company will distribute products directly to its major partners.

In understanding the importance of having more channels, the company will add more distributors on its list to help in enhancing a rapid growth. The greater the number of the distributor's channels the higher the firm's market growth (Ambat et al., 2017). It can also increase the rate of growth in XYZ's sales. Distribution strategy basing on matching and positioning the other aspects of the marketing mix can help the company to increase its capacity of distribution that will, in turn, create a competitive advantage. It will also help the firm to compete effectively with the competitors especially the ones who have been in the market for a long period.


Ambat, L. M. C., Cabagnot, T. R., Flores, D. J. C., & Tiong, R. C. F. (2017, November). A Study on Designing a Marketing Plan for a Start-Up Business in the Philippines. In Ascendens Asia Journal of Multidisciplinary Research Conference Proceedings (Vol. 1, No. 2).

Armstrong, G., & Kotler, P. (2016). Marketing: An Introduction (13 ed.). Boston, MA: Pearson.

Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.

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