Cost Leadership is a strategy, by which a business offers an average product at a low cost to the broadest possible market. Economies of scale result in cost savings, partially passed to consumers. (e.g. Wal-Mart)
Cost Focus is a strategy, by which a business offers an average product at a low cost to a specific customer group. Customer relationship largely depends on the cost of the product and a unique connection with a customer. (e.g. Vanguard Funds; Fido, Solo, Virgin brands by Canada's telecom giants)
Product Differentiation is a strategy that focuses on offering a unique product to the broadest possible market. The product offering necessitates continuous innovation in light of the highly competitive market forces. (e.g. Apple's iPhone, iPad, iPod line-ups)
Differentiation Focus is a strategy that focuses on offering a unique product to a specific customer group. The customer relationship largely depends on the uniqueness of the product and the way the customer is being served. (e.g. Rolex watches; Rolls Royce cars)
Cost Differentiation is the most difficult strategy to attain. It requires offering a unique product at a low cost to a relatively broad market. This strategy creates the highest benefits and is consistent with the Blue ocean strategy, a strategy that reinvents its market place and competes in entirely new dimension. (e.g. Ikea; Henry Ford's assembly line; Apple's products)
Prospector Strategy- an organization that continually innovates by finding and exploiting new product and market opportunities.
• Constantly innovating, developing, and testing new products.
• Creates uncertainty for the prospector’s competitors because they never know what to expect next.
• Examples: Fox Broadcasting Network & MTV
Defender Strategy- used to protect current market share by emphasizing existing products and producing only a limited product line.
• Prevent competitors from stealing ideas...