Question

Define and give an example for each strategy:

Broad Low-Cost Leadership

Focused Differentiation

Broad Differentiation

Best-Cost Provider

Focused Low-Cost Leadership

Answer 1

Broad Low-Cost Leadership: Broad low cost leadership strategy refers to operation of business in many markets and offering low cost products.

Example: Amazon

Focused Differentiation: When firms sell unique products to a narrow group of customers, it is called as focused differentiation.

Example: Apple  

Broad Differentiation: When firms offer unique products to a broad range of customers, it is called broad differentiation.

Example: Star Bucks

Best-Cost Provider: Firms that offer more value in relation to money and superior product, it is called as Best cost provider.

Example: IKEA

Focused Low-Cost Leadership: When firms offer low cost products to a narrow range of customers, it is called focused low cost leadership.

Example: Google