What are various types of competitive strategy approaches

Question

What are the various types of competitive strategy approaches?

Answer 1

Five different competitive strategy approaches stand out:

a. A low-cost provider strategy, appealing to a broad range of consumers based by being the complete low-cost provider of a service or product.

b. A broad differentiation strategy, seeking to distinguish the company’s product or service offering from rivals’ in ways that will appeal to a broad range of purchasers.

c. A best-cost provider strategy, providing consumers extra value for the money by incorporating good-to-excellent product characteristics at a lower cost than rivals; the aim is to have the lowest (best) prices and costs compared to rivals offering products with comparable characteristics.

d. A focused or market niche strategy based on lower cost, intent on a narrow buyer section and outcompeting rivals by offering niche members at a lower cost than rivals.

e. A focused or market niche strategy based on differentiation, intent on a narrow buyer segment and outcompeting rivals by severing niche members customized characteristics that meet their tastes and needs better than rivals products.