2 A broad differentiation strategy This strategy differentiates the firms

2 a broad differentiation strategy this strategy

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prices for tickets than its rival airline company. 2. A broad differentiation strategy - This strategy differentiates the firm’s product or service from rivals’ in ways that will appeal to a broad spectrum of buyers. For example- BMW and Apple. 3. A focused low-cost strategy - This is a strategy where the businesses selling similar products in a given niche lower their prices to increase their profits and to gain a competitive advantage. For example- Ikea where the buyers want to buy the furniture at low cost and low service customer groups. 4. A focused differentiation strategy - The focus under this strategy is to target a small group of customers with differentiated products. For example- Rolex or Rolls-Royce where there are small group of people with their focus on premium pricing and image of the product. 5. A best-cost provider strategy - This strategy provides its customers more value for their money by satisfying their expectations on the areas like quality, features, performances, service attributes by also beating their price expectations. For
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example- Honda and Toyota car companies with higher customer satisfaction ratings 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 seems like from the above five strategies, they opted for the Focused low-cost strategy. What lead them choose this strategy? The growth of the business in their initial days was fast which was continued for two years and they also became the world’s biggest e-scooter player in the U.S. and worldwide. But rapid growth has costs. Lime announced in January about abandoning 12 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 . They made this decision based on judging “where micro mobility has evolved more slowly and where do not believe there is a clear path to profitability. Also, after collecting data from tracking the patterns like when and where to place scooters which helped them in better urban planning. Collecting the data was one of the Lime’s competitive advantages . ANALYSIS OF EXTERNAL ENVIRONMENT PESTEL PESTEL analysis is used to assess the strategic relevance of the six principle components of the macro-environment which are political, economic, social, technological, environmental, and legal forces. Economic factors – Lime has been considered highly economical as it helps saving people spending money on other transportation modes such as using transit and buying the regular bus pass or even renting a vehicle and paying more 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 economical way to spend on renting Lime e-scooters than paying more to the other rental
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companies. There is no doubt that Lime extends a direction for buyers to save costs on transportation methods and encourages sustainability.
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