COMPETITIVE STRATEGIES

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What is a competitive advantage?
Standing out from competitiors by offering customers greate value e.g. lower prices
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What is cost leadership?
Where you have a cost advantage over the competitors
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Give 4 disadvantages of cost leadership
Lower quality, need to sell a lot, no advertising, need cost effective distribution
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What is cost focus?
Lower cost in just a small segment e.g apple 5c
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Give 2 disadvantages of cost focus
risky, need to be persuasive
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What is differentiation focus?
Offering something different in one segment
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Give 2 disadvantages of differentiation focus
Expensive research and promotion, risky as there's a limited audience
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What is differentiation leadership?
Competitive advantage in the whole industry e.g. premium prices
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Give 3 disadvantages of differentiation leadership
Risky, branding is important, lots of market research is needed
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Other cards in this set

Card 2

Front

What is cost leadership?

Back

Where you have a cost advantage over the competitors

Card 3

Front

Give 4 disadvantages of cost leadership

Back

Preview of the front of card 3

Card 4

Front

What is cost focus?

Back

Preview of the front of card 4

Card 5

Front

Give 2 disadvantages of cost focus

Back

Preview of the front of card 5
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