The Three pure generic competitive strategies are cost leadership, differentiation and focus. Each factor has its own advantages and disadvantages. A company should balance these factors in order to be successful. For growing industries, there are several other sub factors like chaining, franchising, etc. Our article will focus primarily on the generic factors as they are applicable to most of the industries and the challenges that the companies face with these strategies
The cost leadership is the most discussed competitive strategy, a company would adopt. By being a cost leader, a company would try to outperform its competitors by offering products and services at a lower cost. The cost leader is expected to withstand the pressure from the increasing competition and achieving economies of scale. For example, WalMart corporation is a good example of cost leader and the cost leadership approach itself act as a barrier to entry, as the new entrant may not have economies of scale.......
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Approximate Word Count: 779
Approximate Pages: 3 (260 words per double-spaced page) |