33:620:301 Lecture 3: Session 3D - Executing Strategy
27 Jan 2019
School
Department
Course
Professor
Document Summary
Whether company is pursuing competitive advantage linked to lower costs or differentiation. Whether company"s market target is broad or narrow. Meaningful lower costs not necessarily the lowest possible cost. Don"t make a product so cheap no one wants it. Offer unique product attributes buyers are willing to pay a premium for. Incorporate attributes that reduce buyer"s overall cost. Incorporate tangible/intangible features that increase customer satisfaction. Signal value of product to buyers through marketing, branding, stylistic appeal. Buyer needs and uses for product are diverse. Many ways to differentiate that buyers will value. Few rival firms follow suit in differentiation. Technological change and innovation is fast paced. Differentiating product to meet specific tastes and requirements of a niche group. Both go after niches based on geography, customers, or products. Firms will overcome rivals through low-cost leadership or differentiation. Multi-segment competitors cannot enter cause niche is too specific and costs will be too high. Specialized preference of niche shifts to mainstream.
