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Strategy

It is a roadmap to attain the goals, missions and objectives of a venture
It should be based on the core competencies while considering strengths and weaknesses.
It should be well thought, well integrated and comprehensive.

Possible Strategy Options

  • Cost leadership
  • Differentiation
  • Focus

Porter Generic Strategic Positioning

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When to Apply Cost Leadership Strategy

  • When the product being sold is similar to other competitors.
  • Customers are not brand conscious.
  • Customers are price conscious and are willing to sacrifice on quality.
  • If the industry is price focuses.

Differentiation Strategy

In this strategy, the entrepreneur builds the customer relationship through uniqueness in his products and customers also seek uniqueness.

When to Apply Differentiation Strategy

  • If the customer demands for differentiation
  • Customer is brand conscious
  • Customer is not price conscious and does not want to sacrifice quality

Focus Strategy

Similar to differentiation but it is focused onto a smaller audience or market segment