Joyce

Wk5AssgnJWilliams – MMBA-6570

Real-world Business Analysis Part IV – Capitol City Domestic & International Auto Parts, Inc.

Six Paths Analysis

The six paths analysis for Capitol City includes the auto parts industry, understanding strategic grouping, buyer groups, scope of product or service offerings, functional-emotional orientation and element of timing.

From Head-to-Head Competition to Blue Ocean Creation

Head-to-Head Competition Blue Ocean Creation

Industry Competition with three major auto The Blue Ocean concepts is built by

leaders, Advance Auto Part, Inc., value innovation. Value innovation

CARQUEST Corporation and does not focus on beating the

Costco Wholesale Corporation competition but make it irrelevant

(Kim &Mauborgne, 2005)

Strategic Group Capitol City’s strategic group Creation in this area focuses on

depends on focus, divergence and defending the company’s strategic

compelling tag line. profile, value curve to generate

compelling numbers for survival.

Buyer group Customer service is the utmost important In Blue Ocean the market is blue

component in our marketing and merchan- and not red ocean.

dising strategy, which is based upon

consumer marketing research

Scope of product Competitive auto parts and equipment Parts are deliverable at all cost.

or service

offering

Functional- Overcome all key business hurdles No risks.

Emotional

Orientation

Time Lead time available on all deliveries Planned risks.

Strategy Canvas Analysis

“The strategy canvas is both a diagnostic and action framework for building a blue ocean strategy” (Kim & Kauborgne, 2005, p. 25). In the auto parts industry strategy canvas forces competitiveness through its pricing of parts; professional and executive corporate supervision, customer/shopper satisfaction, elements of lead-time in the manufacturing and parts delivery; and “above-the-line marketing...