Author Question: Briefly describe the three generic business-level strategies, providing an example of each. What ... (Read 78 times)

Kthamas

  • Hero Member
  • *****
  • Posts: 546
Briefly describe the three generic business-level strategies, providing an example of each.
 
  What will be an ideal response?

Question 2

Explain the different ways in which products can be differentiated, providing an example of each.
 
  What will be an ideal response?



sierrahalpin

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

I appreciate you answering this question. Great community

Answer to Question 2

A differentiation strategy is one in which a company designs its products to be perceived as unique by buyers throughout its industry. The perception of uniqueness can allow a company to charge a higher price and enjoy greater customer loyalty than it could as a low-cost leader. But a perception of exclusivity, or meeting the needs of a small group of buyers, tends to force a company into a lower market-share position. A company using this strategy must develop a loyal customer base to offset its smaller market share and higher costs of producing and marketing a unique product.
One way products can be differentiated is by improving their reputation for quality. Ceramic tableware for everyday use is found at department stores in almost every country. But the ceramic tableware made by Japanese producer Noritake differentiates itself from common tableware by emphasizing its superior quality. The perception of higher quality allows manufacturers to charge higher prices for their products worldwide.
Other products are differentiated by distinctive brand images. Armani and DKNY, for example, are relatively pricey global clothing labels appealing to a young, fashionable clientele. Each is continually introducing new textures and colors that are at once stylish and functional. Another example is Italian carmaker Alfa Romeo, which does not compete in the fiercely competitive mass-consumer segment of the global automobile industry. If it were to do so, it would have to be price-competitive and offer a wider selection of cars. Instead, Alfa Romeo offers a high-quality product with a brand image that rewards the Alfa Romeo owner with status and prestige.
Another differentiating factor is product designthe sum of the features by which a product looks and functions according to customer requirements. Special features differentiate both goods and services in the minds of consumers who value those features. Manufacturers can also combine several differentiation factors in formulating their strategies.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

For a complete list of videos, visit our video library