1. Cost Leadership Strategy
The goal of Cost Leadership Strategy is to offer products or services at the lowest cost in the industry. The challenge of this strategy is toearn a suitable profit for the company, rather than operating at a loss and draining profitability from all market players. Companies such as Walmart succeed with this strategy by featuring low priceson key items on which customers are price-aware, while selling other merchandise at less aggressive discounts.
2. Differentiation Strategy
The goal of Differentiation Strategy is to provideproducts that stand out from competitive offerings. An example is Southwest Airlines, which promotes its no-fee baggage handling as unique from other airlines.
3. Innovation Strategy
The goal ofInnovation Strategy is to leapfrog other market players via the introduction of completely new or notably better products or services. This strategy is typical of technology start-up companies, who oftenintend to "disrupt" the existing marketplace, obsoleting the current market entries with a breakthrough product offering. It is harder for more established companies to pursue this strategy, once theirproduct offering has achieved market acceptance. Apple has been a notable example of this strategy, for example, with its introduction of iPod personal music players, and iPad tablet computers.
4.Operational Effectiveness Strategy
The goal of Operational Effectiveness as a strategy is to perform internal business activities better than competitors, making the company easier or more pleasurableto do business with than other market choices. State Farm Insurance pursues this strategy by promoting their agents as "good neighbors" who actively help customers.
5. Technology-basedcompetitive Strategy (Project Socrates)
In the United States of America during the Reagan Administration, a team of experts led by Michael Sekora was brought together to 1) determine why US industries were...
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