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International Strategic Marketing: Profit

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Discuss aboutt the International Strategic Marketing for Profit.



In the marketing world, a company can have a competitive market over its rivals especially when it makes more profit relative to the average profit made by all other companies in the same industry (Hill and Jones, 2007). A company attains sustained competitive advantage particularly when it’s in a position to maintain a profit that is above average over duration of time. This has been evident with the Classic Sportswear Company where for over seven decades; the company has produced quality and reliable sportswear locally made in Sydney, Australia ("Teamwear - Classic Sportswear", 2017). The core principle of a strategy is to ensure sustenance of competitive advantage that will result in great profitability as well as profit expansion.

Distinctive Competencies

In the business market, competitive advantage lies in unique skills.  These competencies are strengths of a company that allows a firm to stand out from the rest by producing products that outshine their rivals as well as achieve lower selling costs relative to their competitors. Classic Sportswear, for example, has distinctive competencies of producing quality garments. Besides, the company has complete control over all the production capabilities since they do knitting, printing, heat pressing, cutting, sewing, as well as embroidery facilities all under one roof("Teamwear - Classic Sportswear", 2017). This makes Classic Sportswear in full control of all their productions. Essentially, the company has partnered with Asian nations for greater production runs. These competencies and moves have helped Classic Sportswear company attain excellent efficiency plus product quality on the perspective of competitive advantage over the Australian sportswear industry. Distinctive competencies emanate from capabilities and resources.

Hill and Jones (2007) holds that resources are valuable especially when they allow an enterprise create a robust demand for their goods or to lower their costs. Classic Sportswear tangible resources include the apparels that range from technical athletic clothes to athletic street wear with proficiency in the fashion design as well as identifying market trends that keep the company at the leading front regarding sports plus leisurewear designs. These resources have allowed Classic Sportswear sell more of their brands compared to their competitors in the sportswear industry.  If rare, valuable resources can lead to a sustainable competitive advantage in the aspect that competitors don’t possess them as well as hard for the rival companies to copy.

Capabilities are the company resource co-coordinating skills as well as productive use. Such skills reside in the company’s rules, procedures, routine or simply the manner through which a company makes decisions as well as controls their internal processes with the aim of achieving the business’s goals. Classic sportswear intends to continue producing innovative garments based outstanding fabric, fit plus performance blended with proficiency reliability plus the excellent level of service to their customers.


Cost Leadership

It is the lower cost competitive technique which focuses on a wider market. Wheelen and Hunger (2011) states that “cost leadership entails construction of effective scale facilities, rigorous pursuit of cost reductions, and cost minimization in areas like advertising, service and sales force.” Due to low costs, the cost leader can lower the price of their commodities compared to that of their rivals and still make profits. Classic Sportswear follows this strategy of discount selling compared to their competitors in the sportswear industry. Besides, the lower costs of Classic Sportswear enable the company to earn profits during moments of stiff competition from the rival companies 

Cost Focus

According to Wheelen and Hunger (2011) cost focus aims at specific customers, the environmental market as well attempts to serve a particular category. When using this strategy, a business unit finds the cost advantage in their target market. The Classic Sportswear exercises this strategy. The company deals with organizations such as learning institutions and clubs apparels. Alongside leaver’s garments and sporting apparel, the company also caters for schools and colleges sports uniforms. The company’s team has developed a robust presence in Sydney sportswear as well as school wear for decades, focusing on different sports plus educational institutions("Teamwear - Classic Sportswear", 2017). They supply apparels to schools and both local plus international sporting teams 

Differentiation Focus

Like the cost focus mentioned above, differentiation focuses on a specific group of buyers, geographical market or a line of the segment. This strategy is successfully used by the Classic sportswear company where their target marker is the learning institutions and clubs either local or professional. When using differentiation strategy company finds differentiation in the target market sector.  Differentiation is most used by people who firmly acknowledges that a cooperate which is focused can cater for the “needs of a strategic target more efficiently” relative to their competitors (Wheelen and Hunger, 2011).



Hill, C. W., & Jones, G. R. (2007). Strategic Management Theory: An Integrated Approach:[student Text]. Houghton Mifflin.

Jauch, L. R., & Glueck, W. F. (1988). Business policy and strategic management (5th ed.). New York, NY: McGraw-Hill.

Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part I. Accounting horizons, 15(1), 87-104.

Rao, C. A., Rao, B. P., & Sivaramakrishna, K. (2009). Strategic management and business Policy. Excel Books India.

Teamwear - Classic Sportswear. (2017). Retrieved 14 May 2017, from

Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy. Pearson Education India.


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