competitive strategies for outperforming corporations in a particular industry: lower cost and differentiation. They are called generic because they can be pursued by any type or size of business firm‚ even by not-for-profit organization. Lower cost strategy is the ability of a company or a business unit to design‚ to produce‚ and to market a comparable product more efficiently than its competitors. Differentiation strategy is the ability of a company to provide unique and superior value to the buyer
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Corporate Strategy of Asian Paints 1 Identification of Industry Dynamics 7 1.1 Industry description 7 1.1.1 Industry Structure- Decorative: 8 1.1.2 Industry Structure-Industrial Paints: 9 1.1.3 Industry Characteristics: 10 1.1.4 Margins and Industry Attractiveness 10 1.1.5 Decorative Paints industry: Working capital intensive 13 1.2 Segmentation 14 1.2.1 Price based segments in architectural paints 15 1.3 Current Scenario 16 1.3.1 Market Size 16 1.3.2 Growth Rates
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and Product Differentiation Customer Needs: Desires‚ wants‚ or cravings that can be satisfied by means of product attributes or characteristics. There are two factors that determine which product a customer chooses to satisfy their needs‚ first the way a product is differentiated from other product and secondly‚ the price of the product. For example‚ some companies aim to satisfy customer needs by offering a low-priced product and they do not engage in much product differentiation. Other companies
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differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products. In marketing‚ product differentiation (also known simply as "differentiation") is the process of distinguishing a product or offering from others‚ to make it more attractive to a particular target market. This involves differentiating it from competitors’ products as well as a firm’s own product offerings. any differentiation must be valued by buyers
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McCarthy‚ E. J. (2011). Basic marketing: A marketing strategy planning approach (18th ed.). New York‚ NY: McGraw-Hill Irwin. Product Differentiation. (2014). Retrieved from http://www.investopedia.com/terms/p/product_differentiation.asp Product Positioning and Differentiation Strategy. (2014). Retrieved from http://smallbusiness.chron.com/product-positioning-differentiation-strategy-5078.html Product Positioning Strategy. (2014). Retrieved from http://smallbusiness.chron.com/product-positioning-strategy-3350
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unit sold. 3. The major avenues for achieving a cost advantage over rivals include A. eliminating or curbing non-essential cost-producing activities and performing essential value chain activities more cost-effectively that rivals. 4. A differentiation-based competitive advantage E. often hinges on incorporating features that (1) raise the performance of the product or (2) lower the buyer’s overall costs of using the company’s product or (3) enhance buyer satisfaction in intangible or non-economic
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Competitive Strategy: Apple’s competitive strategy is differentiation across the industry. Apple prides itself on innovation more than any other company‚ and is known for their unique top of the line products. Using differentiation as their main source of competitive advantage‚ they have succeeded to the top of their industry‚ while retaining higher than industry average profit margins. This innovative attitude is the source of long-term success throughout the history of Apple. For example
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customers). Problem Statement : Wal-Mart did not know how to enter the fashion market due its core expertise in low-cost retailing. If they want to proceed with fashion segment – they should change their strategy to integrated cost leadership/differentiation. Analysis in brief: Taking in consideration PERT technic :Demographic segment- in fashion segment we have younger Age Structure. This new generation is easier to be influenced with trends‚ mainly women between the ages of 20-40. In Wal-Mart
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The basic drivers of product differentiation are attributes‚ position‚ pricing methods‚ and information. These drivers are what encourage customers to purchase one brand over another. Being “different” is beneficial if the customer feels they are getting a “better bang for their buck”. That is‚ if the customer prefers the company’s product relative to competitors. The brands attributes are what distinguishes the brand from other brands. Attributes for a manufacturer can be product quality‚ design
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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
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