Slides - Uniqueness & Scope Strategies

Slides - Uniqueness & Scope Strategies -...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Differentiation Strategy htp:/www.flyingsolo.com.au/media/204896495r360455individuality.jpg Differentiation Strategies Introduction s Business level strategies are used to gain a competitive advantage by exploiting core competencies for a particular product market s There are two dimensions to business level strategies: s Competitive Scope (Broad or Focused) s Competitive Advantage (Cost or Uniqueness ) s We have already focused on the low-cost advantage strategy. Next we will exam differentiation strategies Focused Low-Cost Strategy Broad Differentiation Strategy Low-Cost Strategy Focused Differentiation Strategy Cost Advantage Uniqueness Competitive Advantage Broad Target Narrow Target Competitive Scope Best Cost The 5 Competitive Strategies Differentiation Strategies Introduction s Differentiation strategies are attractive when buyers needs and preferences are too diverse to be fully satisfied by a standardized product or sellers with identical capabilities s Successful differentiation allows a firm to: s Command a premium price for its product s Gain buyer loyalty to its brand s Gain new customers that would not purchase standardized product Differentiation Strategies Examples s Unique Taste Dr. Pepper, Listerine s Multiple Features s Wide Selection Amazon.com, Home Depot s Spare Parts Availability Caterpillar s Engineering Design/Performance Mercedes s Prestige Rolex s Technology Leadership 3M s Premium Image Starbucks, Ralph Lauren Differentiation Strategies Value Chain s Supply Chain Activities – Starbucks’ coffee beans, Wal-Mart s – Apple iPod s – Boeing s Outbound Logistics – Amazon.com s – LVMH, Cold Stone Creamery s After Sale Service - Caterpillar
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Differentiation Strategies Marketing Role s Marketing has two roles in the differentiation strategy s Use market research to determine product differentiation features valued by customers s Create a perception of value for chosen features s Perceptions of value may be as important as reality when: s The nature of differentiation is hard to quantify s Buyers are making first time purchases s Buyers are not sophisticated s Repurchase is infrequent Differentiation Strategies
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Slides - Uniqueness & Scope Strategies -...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online