2. Strategic Planning for Competitive
Advantage
• Strategies :
– Cost leadership
– Differentiation
– Niche strategy
– Altering the industry structure
– Creating new products and services
– Improving existing product lines and service

3. Strategic Planning for Competitive
Advantage (continued)
• Other Strategies :
– Growth in sales
– First to market
– Customizing products and services
– Hiring the best people
– Innovation

4. Cost Leadership
• Obtain inexpensive raw materials
• Create efficient operations
• Design products for manufacture
• Control overhead costs
• Avoid marginal customers
Chapter 2 Version 6e 4

5. Differentiation
Competitive Advantage
Advantage achieved when a firm
provides something that is unique
and valuable to buyers beyond
simply offering a lower price
than the competition.
Chapter 2 Version 6e 5

6. Niche Strategy
Advantage achieved when a firm
seeks to target and effectively
serve a small segment of the
market.
Chapter 2 Version 6e 6

7. Altering the industry structure

8. Creating new products and service

9. Improving existing product lines and
service

11. Growth in sale

12. First to market

13. Customizing Products and
Services

14. Hiring the best people

15. Innovation