Chapter 5 The five generic competitive strategies

1) Air Asia, proton, Malaysia airliners
2) Giant, Tesco, Kamdar, McDonalds, KFC
3)  Bonia, louis vuitton, victoria secrets, honda, old town kopitiam, JW Marriott, Victoria's secret
4)  Porsche

Before continue with summary chapter 5 i will answer few question from my lecturer. I choose on broad differentiation because easy to all of people know what is that means. It means strategy maintains a presence in both segments of the market. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. R&D competency is developed that keeps designs fresh and exciting. Products keep pace with the market, offering improved size and performance. Prices are above average. Capacity is expanded as higher demand is generated.

In this week i were continue with the five generic competitive strategies. You know what is that???There are two factor that distinguish one strategies from another. First, market target or narrow and second competitive advantage pursued linked to low costs or product differentiation. 

Okay,,lets we start with strategic. What??Strategic?? First of all what is strategies???? "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".

# A low cost strategy: striving to be the overall low-cost provider of a product or service that appeals to a broad range of customers.

# A broad differentiation strategy: seeking to differentiate the company’s product offerings from rivals’ in ways that will appeal to a broad range of buyers LIKE Whole Foods (emphasis on health foods and organic groceries)]. 

# A best-cost provider strategy: giving customers more value for the money by emphasizing both low cost and upscale difference, the goal being to keep costs and prices lower than those of other providers of comparable quality and features (a couple of examples are the Honda and Toyota car companies with customer satisfaction ratings that rival those of much more expensive cars).

# A focused, or market-niche, strategy based on lower cost: concentrating on a narrow buyer segment and out competing rivals on the basis of lower cost (The Gap is a good example).

# A focused, or market-niche, strategy based on differentiation: offering niche members a product or service customized to their tastes and requirements [examples are Rolls-Royce (sells limited number of high-end, custom-built cars) and men's big and tall shops (sell mainstream styles to a limited market with specific requirements)].