tailoring its products or services to exactly match the needs of targeted

Tailoring its products or services to exactly match

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tailoring its products or services to exactly match the needs of targeted customers - it starts with a deep down obsession with customer service 3) Product leadership – the company provides superior value by offering a continuous stream of leading- edge products or services Treacy and Wiersema found that leading companies focus on and excel at a single value discipline, while meeting industry standards on the other two Competitive Positions – competitive strategies are based on the roles that firms play in the target market – leader, challenger, follower, or nicher leader – firm with the largest share o leader strategies – find ways to expand total demand (discovering/promoting new uses for the product, OR encourage more usage of products), protect current market share (prevent/fix weaknesses and continuous innovation), expand market share further challenger – runner up firms that are fighting hard to increase their market share (challenge the market leaders in an aggressive bid for more market share OR play along with competitors o full frontal attack – matching a competitor’s product, advertising, price and distribution efforts o indirect attack – attack competitors weaknesses vs. their strengths or concentrate on gaps in the competitors market coverage follower – other runner-up firms that want to hold their share without rocking the boat o learns from leaders mistakes o copy or improve upon leaders products/programs (with much less investment) nicher – firms that serve small segments not being pursued by other firms o often smaller firms w/limited resources o nicher ends up knowing target customer group so well that it meets their needs better than other firms that casually sell to that niche. o The key idea in niching is specialization o Risks Market niche may dry up, or may grow to the point that it attracts larger competitors By developing multiple niches a company increases its chances for survival Balancing Customer and Competitor Orientation Competitor-centred company – is one that spends most of its time tracking competitors moves and market shares and trying to find strategies to counter them Customer-centred company – focuses more on customer developments in designing its strategies Market-centred company – watching both their customers and their competitors Companies can have 4 orientations (See Figure 18.3 on page 617)
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1. Product oriented 2. Customer oriented 3. Competitor oriented 4. Market oriented
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