Illustrate the use of the generic strategies


Response to the following:

Market Dissection To illustrate the use of the three generic strategies, consider Figure . 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. It 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 models higher than Hyundai's 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).

2411_generic strategies.jpg

Create a similar graph displaying each strategy for a product of your choice. The strategy must include an example of the product in each of the following markets:

(1) cost leadership, broad market;

(2) differentiation, broad market;

(3) cost leadership, focused market; and

(4) differentiation, focused market.

Potential products include cereal, dog food, soft drinks, computers, shampoo, snack foods, jeans, sneakers, sandals, mountain bikes, TV shows, movies.

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Strategic Management: Illustrate the use of the generic strategies
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