COMPETITIVE ADVANTAGE FOCAL POINT OF STRATEGY Differentiation Cost Leadership

Competitive advantage focal point of strategy

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COMPETITIVE ADVANTAGE: FOCAL POINT OF STRATEGY Differentiation Cost Leadership Quick Response Competitive Advantage Economic Value Added Market Value Added Competitiveness Financial Performance Value Created for Customers Value Captured for Investors
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Differentiation In pursuing CA based on differentiation , firms attempt to create unique bundles of products/ services that will be highly valued by customer . The activity focus is on R&D, higher quality material, advertising, Quality systems They are willing to pay premium price for the differentiated products and services as given below: Product features: A Product’s physical characteristics or capabilities may be an important form of differentiation e.g. Philips TV can display two channels on one screen After-sales service: Convenience and quality of service may be a critical factor in deciding among alternative products, e.g. Maruti’s after-sales service given through extensive network Desirable Image: This is obviously the basis of virtually all fashion products, e.g. Tanishq Jewelry
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Differentiation………. Technological Innovation : Technological innovation provides the basis of competitive advantage for broad range of firms. Bose’s speakers which provide quality of sound better than giant loudspeakers, but small enough to fit in any apartment Reputation: Tata’s image of providing affordable price a good quality product as compared to its competitors Manufacturing consistency : This is achieved through Statistical Process Control (SPC)and TQC. MacDolad’s produts are found the same across the globe Status symbol: They satisfy status and psychological needs .e,g. Mercedes or BMW cars or Harley Davidson motorcycle
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Cost Leadership A company which follows cost leadership strategy focuses on reducing its cost below those of its competitors. P&G ‘s Ivory soap follows this strategy by using ingredients that are not
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  • Fall '14
  • AnushreeRoy

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