OVERALL ANALYSIS OF TELECOM MARKET IN CONTEXT WITH GENERIC STRATEGIES
Cost leadership strategy is not the most desirable strategy in this event, as competitors may put intense price pressures, such that all companies would end up reducing their prices drastically.
Differentiation would be a viable strategy in this case as there is a likelihood that the loyal customers would stay with the company. It would also be hard for competitors to cope with the specialised needs of customers who are part of a niche segment in the market.
High customer loyalty towards a company's brands, which is true for the differentiation strategy, can play a vital role in discouraging potential entrants.
Threat of substitutes is reduced in case of the differentiation strategy due to customer loyalty to the unique aspects of a particular product or service, which no substitute product can offer in the customer's mind.
Buyers in case of differentiation strategy would have less power as there are few alternatives available to them.
Cost leadership strategy is not the most desirable strategy in this event, as competitors may put intense price pressures, such that all companies would end up reducing their prices drastically.
Differentiation would be a viable strategy in this case as there is a likelihood that the loyal customers would stay with the company. It would also be hard for competitors to cope with the specialised needs of customers who are part of a niche segment in the market.
High customer loyalty towards a company's brands, which is true for the differentiation strategy, can play a vital role in discouraging potential entrants.
Threat of substitutes is reduced in case of the differentiation strategy due to customer loyalty to the unique aspects of a particular product or service, which no substitute product can offer in the customer's mind.
Buyers in case of differentiation strategy would have less power as there are few alternatives available to them.