Classifies competitive strategies into cost leadership, differentiation, focus.
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Cost Leadership
Cost leadership is a business strategy aiming to be the lowest-cost producer. Like Poundland
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Differentiation
Differentiation is a strategy focused on offering unique or distinct products/services.
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Focus
Focus is a strategy targeting a niche market segment with specialized products/services. Like Rolex
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Differentiation Focus
Differentiation focus is a strategy targeting a specific market segment with unique features. For instance, Tesla's focus on electric vehicles for premium buyers.
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Cost Focus
Cost focus is a strategy where a company aims to become the lowest-cost producer within a specific market segment. Dollar General, which targets cost-conscious consumers in rural areas with its no-frills very basic) approach and low prices.
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Uses of Porters Strategic Matrix
It establishes a clear direction for the business to go in
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Limitations of Porters Strategic Matrix
Not as relevant in dynamic markets, may not be useful in a crisis situation, over simplifies the market structure
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BCG Matrix
Strategic tool evaluating business units' growth and market share. Star, ?, Cow and Dog
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Uses of BCG Matrix
Is a good starting point when reviewing an existing product line to decide future strategy and budgets
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Limitations of BCG Matrix
High market share does not always lead to high profits. Is considered to be too
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Other cards in this set
Card 2
Front
Cost Leadership
Back
Cost leadership is a business strategy aiming to be the lowest-cost producer. Like Poundland
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