Reference no: EM132621351

According to the official website, STIHL clearly positions itself as the number one selling brand of chainsaw. In one of the interviews that took place in 2014, the national marketing director described the company as the current the number one-selling brand of gasoline-powered handheld outdoor power equipment in America. By being the pioneer in the industry and by holding long history and thus being a strong brand, the company successfully applies a focused differentiation strategy by focusing on a narrow piece of market while dominating any new entrants in the market. One of the ways STIHL differentiates itself is the closed distribution channel meaning that the product is only sold through the company's independent dealers and not through secondary stores. This enables profit retention as there is no third party involved and a capability to offer products at lower prices and outperform competitors in the market. Additionally, the company heavily invests in advertising efforts. For example, with their slogan "Real People Stihl People", the company tells a story that resonates with customers and makes their lives easier. These unique advertising and distribution approaches are the main components of the company's differentiation strategy