Chap5and6PP

Chap5and6PP - Works best when Pitfalls/Risks 6 Best-Cost...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Figure 5.1: The Five Generic Competitive Strategies
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 Low-Cost Provider Strategy Provide goods or services with features acceptable to customers at lowest price Appeal to broad spectrum of buyers Produce good basic product with few frills Must have lowest overall costs Must achieve competitive advantage based on costs
Background image of page 2
3 Low-Cost Provider Strategy 2 major avenues for achieving a cost advantage Cost-efficient management of value-chain Revamping value-chain Keys to success Works best when? Pitfalls/Risks
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 Differentiation Provide products that customers perceive as being unique in ways that are important to them Appeal to a broad spectrum of buyers Uniqueness must be valuable to buyers and hard to imitate Price premium charged must be greater than cost to differentiate Many approaches to differentiation
Background image of page 4
5 Differentiation Types of differentiation Differentiation and the value-chain Best approaches to differentiation
Background image of page 5

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

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7

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

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9

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

View Full DocumentRight Arrow Icon
Background image of page 10
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Works best when Pitfalls/Risks 6 Best-Cost Provider Strategy Mix of low cost and differentiation Give buyers more value for the money Meet expectations of product attributes and beat expectations of price Must offer significantly more value for the money Works best when? Pitfalls/Risks 7 Focus Concentrate attention on a narrow piece of the total market Try to do a better job of serving buyers in the target market niche than rivals 2 approaches Focus low-cost Focus differentiation Attractiveness Risks 8 9 A Companys Menu of Strategy Options 10 Supplementing Competitive Strategy Strategic Alliances and Partnerships Mergers and Acquisitions Vertical Integration Outsourcing First-Mover Advantages and Disadvantages Offensive and Defensive Strategies Web Site Strategies Functional-Area Strategies...
View Full Document

Page1 / 10

Chap5and6PP - Works best when Pitfalls/Risks 6 Best-Cost...

This preview shows document pages 1 - 10. Sign up to view the full document.

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