Chapter 5 – Week 6 (The Five Generic Competitive Strategies)

Assalamualaikum wbt…

Today I want to share something from my lecture with Dr. Ummi Salwa. The topic for today is The Five Generic Competitive Strategies in chapter 5. Based on this chapter, there are the five of generic strategy and these are the little explanation for each of generic strategy:-

1) Low- cost Provider- Striving to achieve lower overall costs than rivals on products that     attract a broad spectrum of buyers. Examples are Air Asia, Mydin or Tesco.

2) Broad Differentiation- Differentiating the firm’s product offering from rivals’ with attributes that appeal to a broad spectrum of buyers. Example is Apple product.

3) Focused Low-cost- Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product.

4) Focused Differentiation- Concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members. Example is Ferrari brand.

5) Best-cost Provider- Giving customers more value for the money by offering upscale product attributes at a lower cost than rivals.

Ok… That’s all from me...  Bye2.