1. Written Report: Organizational Strategies
CompetitiveStrategyOptions
Cost Leadership:
A cost-leadership strategy, in contrast, seeks to create the same or similar value for customers
by delivering products or services at a lower cost than competitors, enabling the firm to offer
lower prices to its customer.
Cost leadership advocates capturing a bigger pie of the market share. This can be done by
lowering costs or increasing profits by maintaining average and competitive prices.
Example: BPO Company, JP Morgan “Concentrix Company”
Remember: In Cost leadership: make things as cheap as possible to pass on the benefits to
consumers.
Differentiation Generic Strategy:
Differentiation Generic Strategies can lead to competitive advantage, even in the same
industry.
For example, Rolex and Timex both compete in the market for wristwatches, yet they follow
different business strategies. Rolex follows a differentiation strategy: It creates a higher value
for its watches by making higher quality timepieces with unique features that last a lifetime and
that bestow a perception of prestige and status upon their owners. Customers are willing to
pay a steep premium for these attributes.
To make a success of a Differentiation strategy, organizations need:
Good research, development and innovation.
The ability to deliver high-quality products or services.
Effective sales and marketing, so that the market understands the benefits offered by
the differentiated offerings.
Remember: In Differentiation: make your product different and special so others will pay more
for it.
2. The Focus Strategy (or Niche):
The strategy of focus pushes an organization to gain a competitive advantage. This is done by
focusing on niche markets and clientele. The organization can either use cost leadership or
differentiation to achieve this goal.
The Focus Strategy concentrates on developing products or services for a niche market.
Using this strategy requires a deep understanding of your customers’ needs.
Your aim will be meet these needs:
By providing that special “something extra” that customers can’t get anywhere else.
You’ll also need to decide whether to adopt Cost Leadership or Differentiation.
This is because the Focus Strategy is not normally enough towin substantialmarket
share on its own.
For example, Pets owners it sells everything, including natural food, flea and tick repellant,
outdoor gear, toys and beds, and more. A pet owner can come onto its website and find
anything they need for their pup.
Remember: In Focus strategy: Focus on one single group with whom to sell your product or
service.
3. References:
Competitive strategies. Cleverism. (2019, September 19). Retrieved May 6, 2022, from
https://www.cleverism.com/competitive-strategies/
the Mind Tools Content Team By the Mind Tools Content Team, Team, the M. T. C., wrote, B. T.,
wrote, E., & wrote, Y. (n.d.). Porter's generic strategies: Choosing your route to Success.
Strategy Skills from MindTools.com. Retrieved May 6, 2022, from
https://www.mindtools.com/pages/article/newSTR_82.htm
Abdi, & Borad, O. (2022, April 26). Strategic options. eFinanceManagement. Retrieved May
6, 2022, from https://efinancemanagement.com/financial-analysis/strategic-options
