Basic Competitive Strategies
Basic competitive positioning winning strategies include (as recommend by Michael Porter) following:
A. Total cost-leadership - cost-leadership is acquired by being the lowest-cost process in the industry. It affords the company flexibility in responding to competitive moves by being always able to offer the lowest price to the consumer. Usually this strategy wins the company a high market share.
B. Differentiation - this strategy builds up competitive advantage by offering manufacture with exclusive customer or features or benefits not available from competitive offerings. Here the company concentrates on building a highly differentiated manufacture line and marketing program so that it comes across like the leader in the industry. These images help out it to compete against lower price rivals.
C. Focus-this narrow - focus strategy gain competitive advantage by concentrating on narrow segments of a big market. Emphasis is frequently on quality or benefits in strongly defined market sub segments.
Firms that do not pursue a visible strategy (a losing strategy) are known as middle-of-the-readers. In Porter view, these firms do the baldest in competitive struggles. Another set of schema based on what they call value disciplines are following:
- Operational excellence-the company gives superior value by leading its industry in convenience and price.
- Customer intimacy-the company gives superior value by exactly Segmenting its markets and tailoring its manufacture and services to match exactly the requirement of targeted customers.
- Product leadership-the company provides higher value by offering a
Continuous stream of leading-edge manufacture or services that make their own and competing manufacture obsolete.