What Are the Key Problems Involved in Maintaining the Competitive Advantage in a Growing Industry or Environment.

Decent Essays

The Three pure generic competitive strategies are cost leadership, differentiation and focus. Each factor has its own advantages and disadvantages. A company should balance these factors in order to be successful. For growing industries, there are several other sub factors like chaining, franchising, etc. Our article will focus primarily on the generic factors as they are applicable to most of the industries and the challenges that the companies face with these strategies
The cost leadership is the most discussed competitive strategy, a company would adopt. By being a cost leader, a company would try to outperform its competitors by offering products and services at a lower cost. The cost leader is expected to withstand the pressure from …show more content…

Increased competition from low cost countries has forced companies to rethink their differentiation strategies. Even successful differentiation strategies were imitated by competitors and the brand loyalty of established players has suffered in the recent past. For example, WalMart’s business model is adopted by WuMart, a Chinese retailer based in Beijing. WalMart 's process of gaining

Get Access