MGMT 4P90 Chapter 5: MGMT CH 5 Text book Notes
14 Mar 2017
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Generic strategy a ge(cid:374)eral (cid:449)ay of positio(cid:374)i(cid:374)g a fir(cid:373)"s (cid:271)usi(cid:374)ess le(cid:448)el strategy (cid:449)ithi(cid:374) a(cid:374) industry. Tweaking the recipe of a generic strategy may be essential to success. Cost leadership a firm following this strategy offers products or services with acceptable quality and features to a broad set of customers at a low price. (e. g. payless shoes) walmart is a(cid:374)other (cid:272)ost leader. (cid:862)al(cid:449)ays lo(cid:449) pri(cid:272)es(cid:863) Charging low prices and making a profit is difficult, and cost leaders manage to do so by emphasizing efficiency. Many also rely on economies of scale to achieve efficiency. Differentiation strategy a generic positioning that attempts to convince customers to pay a premium price for its good or services by providing unique and desirable features. The message that such a firm conveys to customers is that you will pay a bit more for our offerings, but you will receive a good value overall because our offerings provide something special.
