To illustrate the use of the three generic strategies, consider Figure AYK.
The matrix shown demonstrates the relationships among strategies (cost leadership versus differentiation) and market segmentation (broad versus focused).
? Hyundai is following a broad cost leadership strategy. Hyundai offers low-cost vehicles, in each particular model stratification, that appeal to a large audience.
? Audi is pursuing a broad differentiation strategy with its Quattro models available at several price points. Audi's differentiation is safety and it prices its various Quattro models (higher than Hyundai) to reach a large, stratified audience.
? Kia has a more focused cost leadership strategy. Kia mainly offers low-cost vehicles in the lower levels of model stratification.
? Hummer offers the most focused differentiation strategy of any in the industry (including Mercedes-Benz).