Club It Part One

Starting a new company can be a challenge, but the owners of Club IT, Lisa and Ruben, seem to understand this and have started a solid company. Not only do the owners have knowledge about the nightclub business but they also have degrees in Business Administration. The club has plenty of room for dancing, music from live bands and DJ’s, seating for 220, the equipment to make appetizers and short orders, and a bar. The setting is all for high energy clients, who are looking for a place to meet, mingle, dance, and have a good time.

The Mission for Club IT stated on their website is as follows”

“We, Ruben and Lisa, offer you live music, DJ’s, dance space and refreshments that suit your lifestyle. You are our friends, and we seek to build a community that meets regularly at Club IT.”

Club IT seems to be on the right track to having a successful business, but the owners understand the importance of having the competitive advantage. According to the Rainer and Turban text, there are five types of competitive advantage. Having knowledge about all of these will assist in finding the correct ones that Club IT need to pursue. The first of these strategies an organization may use is cost leadership. Cost leadership is the strategy where a company continually produces products or provides services at a lower cost than the competitors. One way to keep the prices charged to the consumers is to lower storage costs. Keeping products that the company needs is important, but keeping these products in the store and not at another location can lower storage costs and enable the company to lower the dollar amount asked for the products.

The differentiation strategy is the second strategy discussed in the text. Setting the company apart from the others is a strategy that can assist in consumers remembering the company or searching out the company for the special products or services offered. Differentiation strategy is when a company offers different products,...