Question

Identify the four generic types of business level cooperative strategies and the advantages and disadvantages of...

Identify the four generic types of business level cooperative strategies and the advantages and disadvantages of each

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Answer #1

Identify the four generic types of business level cooperative strategies and the advantages and disadvantages of each

1. Cost Leadership

Advantages

  • A cost leadership strategy may help to remain profitable even with rivalry, new entrants, suppliers' power, substitute products, and buyers' power

Disadvantages

  • ?It can not give quantitative results
  • It is restricted by technology

2. Differentiation

Advantages

  • It makes a product unique and different from competitors

Disadvantages

  • Value of the original product can lost in the process

3. Focused Low Cost

Advantages

  • It serves a small segment
  • Hence it has better control over it

Disadvantages

  • Less market share
  • Less target market

4. Focused Differentiation

Advantages

  • It serves the needs of a particular customer segment efficiently

Disadvantages

  • Less market share
  • Less target market
  • Maybe out focused by competitors
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