Differentiation Uses Which of the Following Generic Value Based Strategies

The same as other available products. Deltas transportation infrastructure is based upon a high-value hub-and-spoke system and offers upscale services to high mileage flyers.

Understanding Business Level Strategy Through Generic Strategies Mastering Strategic Management 1st Canadian Edition

The most costly product in the industry.

. Porters Generic Strategies Differentiation Strategy. Reduce the functional attributes of a product. I previously touched upon Michael Porters generic cost leadership strategy here.

Customer Retention and Loyalty. Differentiation strategy is one of three Porters Generic Strategy. The least costly product in the industry.

For example a candy company may differentiate their candy by improving the taste or using healthier ingredients. Distinct from other available products. Apple Company has utilized this strategy since it was founded and has retained its competitive advantage in the computer and consumer electronics industry.

In the same vein it targets a wide range of customers and prospects. Which strategies are recommended for enhancing differentiation based on value drivers. Differentiation strategy can be especially effective under the following conditions when there are many ways to differentiate the product or service and many buyers perceive these differences as having value.

Differentiation Strategy is the strategy that lays emphasis on offering a superior product on some dimension s compared to what competitors are providing. Southwest Airlines uses a point-to-point basic system for nationwide air transport. In rare cases firms are able to offer both low prices and unique features that customers find desirable.

When buyer needs and uses are diverse. The differentiation strategy for the business is to focus on creating an intimate long-lasting profitable relationship. Starbucks Coffee uses the broad differentiation generic strategy for competitive advantage.

A coffee shop that offers mediocre lattes at a price of five dollars for a small latte C. Is Starbucks broad or focused differentiation. When few rival firms are following a similar differentiation approach.

Four generic business-level strategies emerge from these decisions. Porters generic strategies describe how a company pursues competitive advantage across its chosen market scope. GCS is composed of three generic strategies.

Avoid innovative strategies that are hard to replicate. When few rival firms are following a similar differentiation approach. On the other hand the business has to present unique features of its products or services.

There are threefour generic strategies either lower cost differentiated or focus. A company chooses to pursue one of two types of competitive advantage either via lower costs than its competition or by differentiating itself along dimensions valued by customers to. 1 cost leadership 2 differentiation 3 focused cost leadership and 4 focused differentiation.

According to Porter 1980 differentiating a business requires that new and unique products with value are created for which customers will pay premium prices for. In Michael Porters framework this strategy involves making the business and its products different from other coffeehouse firms. Southwest and Delta both compete in the airline industry but they follow different business strategies.

Which of the following examples uses a focused differentiation strategy. This difference highlights Starbucks Coffees value proposition regarding high quality and uniqueness of products. A differentiation strategy is based on creating a product that customers perceive as being.

Starbucks Coffee uses the broad differentiation generic strategy for competitive advantage. BUS498 Chapter 6 HW. Cost leadership differentiation and focus.

Porter asserts that a business model cant offer the best product or service at the lowest price and maintain a sustainable competitive advantage. A hotel chain that offers high-quality service with room rates of under 75 dollars per night. Differentiation is possible along one or more of various dimensions product features quality customer service guarantee distribution delivery.

The term value innovation is used to describe. An organization employing a strategy that attempts to be all things to all people will become stranded in mediocrity ie. Others are cost leadership and focus.

When buyer needs and uses are diverse. Strive to achieve technological advances. The way a company decides to group customers based on important differences in their needs to gain a competitive advantage.

By focusing on their product line they are able to produce high quality products that meet customer expectations. Create product features that appeal to a wide range of buyers. Effective alignment between its generic strategy for competitive advantage and strategies for intensive growth supports Starbucks Corporations performance against competitors like McDonalds and Dunkin formerly Dunkin Donuts as well as Maxwell House and Folgers which compete in the food and beverage and consumer goods market.

A businesss overall competitive theme the way it positions itself in the marketplace to gain a competitive. Differentiation strategy allows a company to compete in the market with something other than lower prices. A company may decide to select one of two types of competitive advantage.

Cheaper but inferior to the available products. When a firm pursues differentiation strategy it attempts to become unique in the industry by offering those products and services which have value to the customers. A broad differentiation strategy focuses on developing a brand that is in some way unique from other brands.

For instance they may choose to lower costs or differentiate based on what is important to their customers to demand higher prices on products. This is arguably the hardest value discipline in which to excel. The payoff is long-term customer relationships and low employee turnover.

Differentiation strategy can be especially effective under the following conditions when there are many ways to differentiate the product or service and many buyers perceive these differences as having value. A tennis pro shop that sells low-quality racquets priced at 150 dollars per racquet B. Strategy used Nikes differentiation strategy is to establish the company as the standard in athletic wear.

Porter S Generic Strategies Explained With Examples B2u