Description
This is a documentation explaining distinctive features of competitive strategies.
Distinctive Features of the Generic Competitive Strategies
Type Of Feature Strategic Target Low Cost Provider Brand Differentiation Best-Cost Provider Focused Low – Cost and Focused Differentiation A narrow conscious niche where buyer needs & preferences are distinctively different from the rest of the market Lower cost in serving the niche (focused low cost) or special attributes that appeals to the taste or requirements of niche members (Focused Differentiation) Features and attributes that appeal to the tastes and/or special needs of the target segment
A broad section of the market
A broad cross section of the market
Value conscious buyer
Basis of Competitive Advantage
Lower costs from competition
An ability to offer buyers something different from competitors
More value for the money
Product Line
A good basic product with few frills (Accepted quality and limited selection) A continuous search for cost reduction without sacrificing acceptable quality & essential features Try to make a virtue out of product features that lead to low cost
Many product variations, wide selection, strong emphasis on differentiating features Creation of value for buyers, strive for product supremacy
Good-to-excellent attributes, several-tomany upscale features
Product Emphasis
Incorporation of upscale features and attributes at low cost
Tailor made for the tastes and requirements of the niche members
Marketing Emphasis
Build in whatever features buyers are willing to pay for, Charge a premium price to cover the extra cost of differentiating features
Either underprice rival brands with comparable features or match the price of rivals & provide better features-to build a reputation for delivering best value Develop unique expertise in simultaneously managing costs down and upscaling features & attributes
Communicate how the focuser’s product attributes & capabilities aim at catering for niche member tastes and/or specialized requirements
Sustaining the strategy
Offer economical prices/good value Aim at contributing to sustainable cast advantage- the key is to manage costs down, year after year, in every area of the business
Communicate the points of difference in credible ways Stress constant improvement & use innovation to stay ahead of Imitative competitors Concentrate on few key differentiating features, tout them to create a reputation & brand image
Remain totally dedicated for serving the niche better than other competitors; don’t blunt the firm’s image & efforts by entering other segments or adding other product categories to widen market appeal
doc_522445263.docx
This is a documentation explaining distinctive features of competitive strategies.
Distinctive Features of the Generic Competitive Strategies
Type Of Feature Strategic Target Low Cost Provider Brand Differentiation Best-Cost Provider Focused Low – Cost and Focused Differentiation A narrow conscious niche where buyer needs & preferences are distinctively different from the rest of the market Lower cost in serving the niche (focused low cost) or special attributes that appeals to the taste or requirements of niche members (Focused Differentiation) Features and attributes that appeal to the tastes and/or special needs of the target segment
A broad section of the market
A broad cross section of the market
Value conscious buyer
Basis of Competitive Advantage
Lower costs from competition
An ability to offer buyers something different from competitors
More value for the money
Product Line
A good basic product with few frills (Accepted quality and limited selection) A continuous search for cost reduction without sacrificing acceptable quality & essential features Try to make a virtue out of product features that lead to low cost
Many product variations, wide selection, strong emphasis on differentiating features Creation of value for buyers, strive for product supremacy
Good-to-excellent attributes, several-tomany upscale features
Product Emphasis
Incorporation of upscale features and attributes at low cost
Tailor made for the tastes and requirements of the niche members
Marketing Emphasis
Build in whatever features buyers are willing to pay for, Charge a premium price to cover the extra cost of differentiating features
Either underprice rival brands with comparable features or match the price of rivals & provide better features-to build a reputation for delivering best value Develop unique expertise in simultaneously managing costs down and upscaling features & attributes
Communicate how the focuser’s product attributes & capabilities aim at catering for niche member tastes and/or specialized requirements
Sustaining the strategy
Offer economical prices/good value Aim at contributing to sustainable cast advantage- the key is to manage costs down, year after year, in every area of the business
Communicate the points of difference in credible ways Stress constant improvement & use innovation to stay ahead of Imitative competitors Concentrate on few key differentiating features, tout them to create a reputation & brand image
Remain totally dedicated for serving the niche better than other competitors; don’t blunt the firm’s image & efforts by entering other segments or adding other product categories to widen market appeal
doc_522445263.docx