Strategic choice-Strategic Management

by: Leo Masucol

The Generic Strategy Approach

Differentiation StrategyMaking oneself different from

othersAdding to customer’s perceived

value of the firm and its productsCall for continuous innovation

(customer-centered)

How to differentiate?Image BuildingHigh quality and distinctive

productsSuperior customer servicesUnique design and packagingConvenient terms to customers

Focus StrategyInvolves segmenting the market

Focusing on a given market segment

Calls for specialization in a specific market segment (niche marketing)

Why Focus Strategy? Different group of buyers with different needsNo other rival is attempting to specialize in the same

segmentA firm’s resources don’t allow it to spread over the

entire segmentWhere some segments are more attractive than

others

Diamond Model

Ansoff’s Matrix

END