tailieunhanh - Lecture Crafting and executing strategy: The quest for competitive advantage - Concepts and cases (18/e) - Chapter 5

Chapter 5 - The five generic competitive strategies: Which one to employ? This chapter includes contents: The five competitive strategies, low-cost provider strategies, broad differentiation strategies, best-cost provider strategies, focused (or market niche) strategies, the contrasting features of the five generic competitive strategies: a summary. | CHAPTER 5 THE FIVE GENERIC COMPETITIVE STRATEGIES - Which One to Employ? Student Version McGraw-Hill/Irwin Copyright ®2012 The McGraw-Hill Companies, Inc. Why Do Strategies Differ? Is the competitive advantage pursued linked to low costs or product differentiation? Is the firm’s market target broad or narrow? Key factors that distinguish one strategy from another THE FIVE GENERIC COMPETITIVE STRATEGIES Low-Cost Provider Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers. Broad Differentiation Differentiating the firm’s product offering from rivals’ with attributes that appeal to a broad spectrum of buyers. Focused Low-Cost Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product. Focused Differentiation Concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members Best-Cost Provider Giving customers more value for the money by offering upscale product attributes at a lower cost than rivals LOW-COST PROVIDER STRATEGIES Effective Low-Cost Approaches: Pursue cost-savings that are difficult imitate. Avoid reducing product quality to unacceptable levels. Competitive Advantages and Risks: Greater total profits and increased market share gained from underpricing competitors. Larger profit margins when selling products at prices comparable to and competitive with rivals. Low pricing does not attract enough new buyers. Rival’s retaliatory price cutting set off a price war. When a Low-Cost Provider Strategy Works Best Price competition among rival sellers is vigorous. Products are readily available from many sellers. Industry products are not easily differentiated. Most buyers use the product in the same ways. Buyers incur low costs in switching among sellers. Large buyers have the power to bargain down prices. New entrants can use introductory low prices to attract buyers and build a customer base. Pitfalls of a Low-Cost Provider . | CHAPTER 5 THE FIVE GENERIC COMPETITIVE STRATEGIES - Which One to Employ? Student Version McGraw-Hill/Irwin Copyright ®2012 The McGraw-Hill Companies, Inc. Why Do Strategies Differ? Is the competitive advantage pursued linked to low costs or product differentiation? Is the firm’s market target broad or narrow? Key factors that distinguish one strategy from another THE FIVE GENERIC COMPETITIVE STRATEGIES Low-Cost Provider Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers. Broad Differentiation Differentiating the firm’s product offering from rivals’ with attributes that appeal to a broad spectrum of buyers. Focused Low-Cost Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product. Focused Differentiation Concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members Best-Cost Provider Giving customers more value for the money by offering upscale .

• Kế hoạch kinh doanh
• Crafting strategy
• Executing the strategy
• Company’s strategy
• Competitive advantage
• Lecture Crafting and executing strategy
• Competitive strategies
• Strategy implementation process
• Good strategy execution
• Distinctive strategy
• Corporate strategy
• Strategic vision
• Company’s external environment
• Competitive position