Marketing Strategy : Generic Competitive Strategies

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1) The "Generic Competitive Strategies" are: Cost Leadership Strategy, Differentiation Strategy, and Focus Strategy. This theory is based on two dimensions, which are how the firm seeks to acquire a competitive advantage and their intended market 's scope, which can either be broad or focused. The Cost Leadership strategy appears to be broad/industry wide and their advantage is having low cost, which is important for a given level of quality. What makes this stategy so effective is the fact that they sell their products for average inventory prices to gain higher profits than their competitors or they will sell below average prices to gain a market share. The lessons that can be learned from the use of the Cost Leadership Strategy include: required access to the capital necessary to make a significant production asset investment, the required skills needed to design products for efficient manufacturing purposes, high levels of experience in the manufacturing process, and the most efficient distribution channels available. The Differentiation Strategy is broad/ industry wide and their advantage is producing a unique product. This strategy provides unique products or services that are valuable to the consumers and these products/ services are more desirable than that of the competition. With such a differentiated product, the firm would be able to charge a high price for their quality good. The lessons that can be learned form the use of the Differentiation Strategy
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