THE FIVE GENERIC COMPETITIVE STRATEGIES

Asslamualaikum.. just wanna to share something today.. “Everyone wants, happiness,.No one wants, pain, But you cannot have a rainbow, without a little rain.”  Okay let begin our sharing session. This par is one of important part from chapter five which is THE FIVE GENERIC COMPETITIVE STRATEGIES. As figure shown it is regarding on basis of competitive advantage that provided in a company.

Low-cost provider : Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers

Broad differentiation : Differentiating the firm’s product offering from rivals’ with attributes that  appeal to a broad spectrum of buyers.

Focused low- cost : Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product.

Focused differentiation : Concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members

Best cost provider : Giving customers more value for the money by offering upscale product attributes at a lower cost than rivals.

This is example of company that applied the GENERIC COMPETITIVE STRATEGIES.

TESCO :knowns as low cost provider and provide difference segment of product.It have involved the differ segmentation like age, demografic, gender and more into their plan of marketing.Example,as we can see, in the super market they have divided into several section of distribution of product as for different target market in order to deliver the product to who are needed. Like stationary section, the target market that who is potential to buy the product such student,teacher, businessman or else at the low price.

AIR ASIA : is the only one airline that have provide the flight ticket at the lowest price. Even it have provide the low price, but it still narrow or niche at the side of segmentation.Air asia have struggle to cut down their cost in order to provide the airline ticket at the lowest pricefor beat with other airlines.It also knwon as  leadership of low cost.

IKEA : the company of IKEA have produced a stuff of furniture. It have designed variety of furniture from differ segment , from bedroom untill office structure. Even they have broadly segmention but they still focused on differentiation product. The raw material that have been used are from quality resources and definitely the price is higher .Even they have focused on differentiation product, they still capable in this market because they have rely on broad segmentation that gived golden oppurtunity to market the product.

PORSCHE : The strategy business that have used in their marketing is differentiation product.They have provide the narrow segmentation which is exclusive product for specific target market. The have only focused on differentiation product that must be exclusively and  definitely no same at all to other rivals.