JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA

SCHOOL OF MANAGEMENT STUDIES

STRATEGIC MANAGEMENT

GENERIC COMPETITIVE STRATEGIES

MANJUNADH PADALA13021E0026

GENERIC STRATEGIES:

Competitive strategies includes all the moves and approaches a firm has taken ...

To attract buyers

To withstand competitive pressure &

To improve its market position

1.Low-cost leadership strategy

2.Differentiation strategies

3.Focus and Specialization strategies

Classification of generic strategies:

1.Low-Cost Leadership Strategy

The low-cost leader’s basis for, competitive

advantage is lower overall costs than the

competitors.

The purpose of striving to be a low-cost

producer are:To fix the price for the products at the lower

level compared to that of the competitors,

To gain the maximum market share from the

competitors, or

To earn a high profit margin and thus,

maximize the profits

2.Differentiation strategiesDifferentiation strategy is used by the

producer to satisfy the diversified needs of the customer by a standardized product.

The value added by the uniqueness of the product may allow the firm to charge a premium price for it. The firm hopes that the higher will more than cover the extra-costs incurred in offering the unique product.

3.Focus and Specialization strategiesThe focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or a differentiation.

A firm using a focus strategy often enjoys a high degree of customer-loyalty, and this entrenched loyalty discourages other firms from competing directly.

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