Question

1. Which one of the five generic competitive strategies best characterizes your Netflix's strategic approach to competing successfully? Use the following companies to answers the remaining questions: Apple Bank of America Walmart Microsoft 2. Which company appears to be employing a broad low-cost strategy? 3. Which company appears to be employing a broad differentiation strategy? 4. Which company appears to be employing a best-cost strategy?

Answer 1

1. According to Porter's model, Netflix uses the generic strategy of cost leadership to compete successfully. This leadership is a result of minimized costs and a frequent discount in the subscription prices to give them a competitive advantage in the highly competitive OTT industry.

2.

Walmart.

Well, we all know the low cost strategy used by Walmart to attract consumers and ultimately convert them into loyal customers. Since Walmart concentrates on a wide market group, this strategy is known as broad low cost strategy, and used for competitive advantage.

3.

Apple

When a firm deploys a broad differentiation strategy, it is seeking to have products and services that could entice a broad spectrum of buyers through product differentiation. Apple does this by launching products such as Iphone, Ipad, Ipod, Macbook, etc which serve different purposes.

4.

Microsoft

In a best cost strategy, we essentially mean that the products are upgrades and the cost decreases along with the upgrades. In simple terms, value for money is more for the consumers. Microsoft has been increasingly updating its softwares and continues to provide the same at lower costs than before therefore following the best cost strategy.

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