A company's competitive strategy deals with:
the specific actions management plans to take to develop a better value chain than
how it plans to unify its functional and operating strategies into a cohesive effort
aimed at successfully taking customers away from rivals.
deals exclusively with the specifics of management's game plan for competing
successfully–its specific efforts to please customers, its offensive and defensive
moves to counter the maneuvers of rivals, its responses to whatever market
conditions prevail at the moment, its initiatives to strengthen its market position, and
its approach to securing a competitive advantage vis-à-vis rivals.
its plans for under-pricing rivals and achieving product superiority.
the specific actions management intends to take to strongly differentiate its product
offering from the offerings of rival companies in the industry.
A company achieves competitive advantage whenever:
it has a product offering that is differentiated from the product offerings of rivals.
its customers exhibit a high degree of loyalty to the company's brand.
it has more core competencies than its rivals.
it has a better credit rating than rivals.
it has some type of edge over rivals in attracting customers and coping with
The five generic types of competitive strategies include:
offensive strategies, defensive strategies, differentiation strategies, low-cost
strategies, and first-mover strategies.
low-cost leadership, broad differentiation, best-cost provider, focused low-cost, and
offensive strategies, defensive strategies, striving to be a market leader,
technological leadership strategies, and product innovation strategies.
low-price strategies, premium price strategies, middle-of-the-road strategies, product
leadership strategies, and market share leadership strategies.
attacking competitor strengths, attacking competitor weaknesses, market leadership
strategies, low-cost leadership strategies, and product superiority strategies.
A low-cost leader's basis for competitive advantage is:
using an everyday low pricing strategy to gain the biggest market share.
bigger profit margins than rival firms.
high buyer switching costs because of the company's differentiated product offering.
meaningfully lower overall costs than competitors.