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prices for tickets than its rival airline company.2.A broad differentiation strategy- This strategy differentiates the firm’s productor service from rivals’ in ways that will appeal to a broad spectrum of buyers. Forexample- BMW and Apple.3.A focused low-cost strategy- This is a strategy where the businesses sellingsimilar products in a given niche lower their prices to increase their profits and togain a competitive advantage. For example- Ikea where the buyers want to buythe furniture at low cost and low service customer groups.4.A focused differentiation strategy- The focus under this strategy is to target asmall group of customers with differentiated products. For example- Rolex orRolls-Royce where there are small group of people with their focus on premiumpricing and image of the product.5.A best-cost provider strategy- This strategy provides its customers more valuefor their money by satisfying their expectations on the areas like quality, features,performances, service attributes by also beating their price expectations. For
example- Honda and Toyota car companies with higher customer satisfactionratings than their rivals of much more expensive cars.Which strategy did Lime go for?It depends on what companies opt for as their business strategy but for Lime it seemslike from the above five strategies, they opted for the Focused low-cost strategy. Whatlead them choose this strategy?The growth of the business in their initial days was fast which was continued for twoyears and they also became the world’s biggest e-scooter player in the U.S. andworldwide. But rapid growth has costs. Lime announced in January about abandoning12 markets which included big cities in their list and had to lay-off 14% of its workforce.All they did this because now they shifted their primary focus to profitability. Theymade this decision based on judging “where micro mobility has evolved more slowlyand where do not believe there is a clear path to profitability. Also, after collecting datafrom tracking the patterns like when and where to place scooters which helped them inbetter urban planning. Collecting the data was one of the Lime’s competitiveadvantages. ANALYSIS OF EXTERNAL ENVIRONMENTPESTELPESTEL analysis is used to assess the strategic relevance of the six principlecomponents of the macro-environment which are political, economic, social,technological, environmental, and legal forces.Economic factors – Lime has been considered highly economical as it helpssaving people spending money on other transportation modes such as usingtransit and buying the regular bus pass or even renting a vehicle and payingmore as compared to renting Lime’s scooters/bikes. As we know that the e-scooters are used to cover short distances, it would be a better and economicalway to spend on renting Lime e-scooters than paying more to the other rental
companies. There is no doubt that Lime extends a direction for buyers to savecosts on transportation methods and encourages sustainability.