Porter Strategy Exercise - Key(3).pdf

Porter Strategy Exercise - Key(3).pdf - Cost Leadership...

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Cost Leadership, Differentiation, Focus Professor Baugher MGT 150 Differentiation (unique + high price, hinges on customer perception of high price value) Apple: Computers/Phones, higher quality phones and computers, unique on innovation in PC industry.* 7-Eleven Convenience at higher price in retail grocery stores, unique on convenience in grocery store industry. Beretta Firearms (full range of guns), unique on higher quality in firearms industry. Rolex: High end watches for men and women, unique on quality and design in watch industry Hyatt: Expensive hotel for broad range of customers, unique on lobby design and building design in lodging industry. Focus-Differentiation (unique + high price + focus on product, customer/both) Cinnabon: High price, higher quality pastries (product focus on pastry in broader retail food industry), unique on freshness and quality, niche in restaurant or fast food industry. Rolls Royce: limited edition cars at very high price (product focus in car industry), unique on style and limited availability, niche in auto industry. Prada: Handbags of broad variety for men and women, but only handbags (product focus in the apparel industry), unique on style, niche in clothing accessory industry or fashion industry Nike: Expensive sneakers for men and women (product focus on sneakers) niche shoe industry), unique on quality/style Michelle: expensive watches for women (customer focus), unique on design, niche in shoe industry. Four Seasons: expensive hotel for high-end tourists including many resort locations (customer focus) Unique on quality service, niche in lodging industry. Starbucks: Higher quality coffee and associated foods, unique on coffee quality, less focused, for example, than Cinnabon (Focus on product), niche in fast food industry.* Dom Perignon: High quality champagne, niche in wine industry (focus on product) Cost Leadership (low price (not cheap), good value, often with high market share, a very acceptable product) Southwest Airlines: No frills, low cost tickets in airline industry.
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