1. Low-Cost Provider =
Striving to achieve lower overall costs than rivals on products that attract a
broad spectrum of buyers.
2.
Broad Differentation =
Differentiating the firm’s product offering from rival’s with attributes thath
appeal to the broad spectrum of buyers.
3.
Focused Low-Cost = Concentrating
on a narrow price-sensitive buyer segment and on costs to offer a lower-priced
product.
4.
Focused Differentation =Concentrating
on a narrow buyer segment by meeting specific tastes and requirements of niche
members
5.
Best-Cost Provider = Giving
customers more value for the money by offering upscale product attributes at a
lower cost than rivals.
A low-cost
provider’s basis for competitive advantage is lower overall costs than
competitors.
Successful low-cost leaders, who have the lowest
industry costs, are exceptionally good at finding ways to drive costs out of
their businesses and still provide a product or service that buyers find
acceptable.
And cost driver is a factor that
has a strong influence on a firm’s costs.
The Strategic Management Principle is success in achieving a low-cost edge over rivals comes from
out-managing rivals in finding ways to perform value chain activities faster,
more accurately, and more cost-effectively.
A company’s competitive strategy should be well-matched to its internal situation
and predicated on leveraging its collection of competitively valuable resources
and capabilities.
