Six Basic Strategy

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Broad Differentiation

Strategy

A Broad Differentiation strategy maintains a presence in both segments of the market. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. R&D competency is developed that keeps designs fresh and exciting. Products keep pace with the market, offering improved size and performance. Prices are above average. Capacity is expanded as higher demand is generated.

Mission Statement

Premium products for the industry: our brands withstand the tests of time. Our primary stakeholders are customers, stockholders, management, and employees.

Tactics

• Research & Development: We will keep our existing product line, and introduce at least one more line, maintaining a presence in both segments. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability.

• Marketing: Our company will spend aggressively in promotion and sales in both segments. We want every customer to know about our superb designs, and we want to make our products easy for customers to find. We will price at a premium.

• Production: We will grow capacity to meet the demand that we generate, avoiding second shift/overtime when possible. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map.

• Finance: We will finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep assets/equity (leverage) between 1.5 and 2.0. We measure performance in terms of market share, market cap, ROA, and profits....
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