Generic Strategy

No. Business-Level Strategy Broad/Narrow Market Source of Advantage Description
1. Low-cost leadership Broad Lowest-cost production or service delivery Firms attempt to provide product or service at the lowest cost to the customer. The product or service is targeted at a very broad segment of the market.
2. Differentiation Broad Preferred product or service First attempt to provide a product or service that is preferred above the product or services of competing firms. The product or service is targeted at a very broad segment of the market.
3. Best value Broad Low-cost and higly desirable product or service First attempt to provide a product or service that is very attractive to customers, but also delivered at a reasonably low cost, thus providing the best service value for the cost. The product or service is targeted at a very broad segment of the market.
4. Focus through low-cost leadership Narrow Lowest-cost production or service delivery First attempt to provide a product or service at the lowest cost to the customer within a specific segment (niche) of the market.
5. Focus through a differentiation Narrow Preferred product or service Firms attempt to provide a differentiated product or service that is preferred above the products or services of competing firms within a specific segment (niche) of the market.
6. Focus through best value Narrow Low-cost and highly desirable Firms attempt to provide a product or service that is very attractive to customers, but also produced at a reasonably low cost, thus providing the best value for cost in a particular segment (niche) of the market. [continues]

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