Chap 05

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International Islamic University Chittagong, Batch 28 A9

Business Gesundheit & Medizin

The Five Generic Competitive Strategies Published by Lecturesheet.iiuc28a9.com

Strategy and Competitive Advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key to Gaining a Competitive Advantage

Fig. 5.1: The Five Generic Competitive Strategies

Low-Cost Provider Strategies ,[object Object],[object Object],[object Object],Keys to Success Low-cost leadership means low overall costs, not just low manufacturing or production costs!

Approaches to Securing a Cost Advantage ,[object Object],[object Object],Approach 1 Approach 2 Control costs! By-pass costs!

Keys to Success in Achieving Low-Cost Leadership ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],Characteristics of a Low-Cost Provider Successful low-cost producers champion frugality but wisely and aggressively invest in cost-saving improvements !

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],When Does a Low-Cost Strategy Work Best?

Pitfalls of Low-Cost Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],Differentiation Strategies Objective Keys to Success

Benefits of Successful Differentiation ,[object Object],[object Object],[object Object],[object Object],[object Object],Which hat is unique?

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Types of Differentiation Themes

Where to Find Differentiation Opportunities in the Value Chain ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Internally Performed Activities, Costs, & Margins Activities, Costs, & Margins of Suppliers Buyer/User Value Chains Activities, Costs, & Margins of Forward Channel Allies & Strategic Partners

How to Achieve a Differentiation-Based Advantage Approach 1 Incorporate features/attributes that raise the performance a buyer gets out of the product Approach 2 Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible ways Approach 3 Compete on the basis of superior capabilities Approach 4 Incorporate product features/attributes that lower buyer’s overall costs of using product

When Does a Differentiation Strategy Work Best? ,[object Object],[object Object],[object Object],[object Object]

Pitfalls of Differentiation Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Best-Cost Provider Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],Objectives

When Does a Best-Cost Provider Strategy Work Best? ,[object Object],[object Object]

Risk of a Best-Cost Provider Strategy ,[object Object],[object Object],[object Object]

Focus / Niche Strategies ,[object Object],[object Object],[object Object],[object Object],Objective Keys to Success

[object Object],[object Object],[object Object],Approaches to Defining a Market Niche

What Makes a Niche Attractive for Focusing? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Risks of a Focus Strategy ,[object Object],[object Object],[object Object]

Deciding Which Generic Competitive Strategy to Use ,[object Object],[object Object],[object Object],[object Object],[object Object],The big risk – Selecting a “stuck in the middle” strategy! This rarely produces a sustainable competitive advantage or a distinctive competitive position!

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Chap 05

1. The Five Generic Competitive Strategies Published by Lecturesheet.iiuc28a9.com

3. Fig. 5.1: The Five Generic Competitive Strategies

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14. How to Achieve a Differentiation-Based Advantage Approach 1 Incorporate features/attributes that raise the performance a buyer gets out of the product Approach 2 Incorporate features/attributes that enhance buyer satisfaction in non-economic or intangible ways Approach 3 Compete on the basis of superior capabilities Approach 4 Incorporate product features/attributes that lower buyer’s overall costs of using product

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Chap 05

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Chap 05