Generic Competitive strategies

Group 1  

INTR ODUC TION

Overall Cost Leadership

Aggressive Construction of

Efficient Scale Facilities

Vigorous Pursuit of cost

reductions from experience

Tight cost and overhead cost

It requires...

So basically...

Cost Reduction

DIFFERE NTATION

DESIGN

DESIGN

TECHNOLOGY

TECHNOLOGY TECHNOLOGY

TECHNOLOGY TECHNOLOGY

CUSTOMER    Service

SUPPLIER OR DEALER

CREATES A DEFENSIVE POSITION AGAINST

COMPETITIVE 5 FORCES!

Brand LOYALTY

Increases Profit

Margins

DIFFERENTIATION PROBLEMS

•  Low-cost competitors become

too great to counter.

•  The need for differentiation

falls.

•  Imitation products

progressively narrows

perceived differentiation.

Other requirements of

the generic Strategies

Overall Cost Leadership

DIFFERE NTATION

SUMMARY TABLE

STUCK IN THE MIDDLE

Conclusion Conclusion Conclusion

Strategies THREE

GENERIC

Overall Cost Leadership

DIFFERE NTATION

Focus

•  To  answer  a  ques,on,  raise  your  hand  with  a  hangloose  hand  sign