Question

A competitive strategy concerns the specifics of management’s game plan for competing success­fully and achieving a competitive advantage over rivals. Discuss any one or two of these five strategies?

Answer 1

The two strategies for competing successfully and achieving a competing advantage over rivals are:

1. A low-cost provider strategy

Using this strategy, management strives to achieve lower overall costs than competitors or rivals and present it to a large number of customers, usually by selling at a lesser price than the rivals.

2. A market niche strategy based on low costs

Using this strategy, management focuses on a particular segment which narrows down the buyer segment and helps them to outcompete rivals by having a lower price hence enables to serve niche customers at a lower price.