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Generic Competive Strategies

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Could you assist me with explaining the Generic Competitive Strategies below and which one is better to utilize.

Low cost provider

Best cost provider

Focus strategy based on lost cost

Focus strategy based on differentiation

A broad differentiation strategy

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There are five basic generic competitive strategies. They are:

Low cost provider's strategy is to sell products at the lowest price possible to attract customers. This can be used as a way to attract more customers (as in lost leaders) or as a strategy based on selling more products for less (like in the club stores). It involves earning less margin but enjoying higher sales volumes. Typically an organization must have the benefits of economies of scale to deploy this strategy (otherwise losses will occur, generally).

Best cost provider aims to give customers more value for their money by offering low prices plus upscale products that compete with those products offered at higher prices. An example ...

Solution Summary

This detailed solution explains the generic competitive strategies:

Low cost provider

Best cost provider

Focus strategy based on lost cost

Focus strategy based on differentiation

and provides examples of each.Includes APA formatted references.

$2.19
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