What types of competitive strategies are the most effective?
Will the same strategy work in most venues? Why or why not?
There are four main types of competitive strategies:
(1) cost leadership
(3) low cost focus
(4) low cost differentiation
(1) Cost leadership strategy is used by large companies that can produce and/or obtain products a low cost due to economies of scale. These companies will sell the products to customers with a small markup to ensure that the price remains low. The purpose of the strategy is to be the cheapest provider of a good or service, which will make competitors have a difficult time matching this strategy. A small ...
The solution outlines four competitive strategies that a company will have to choose to make the company successful. Based on the type of company and resources available, a company will have to choose the best strategy.