Question

Provide an example of any company that is using one of the five strategic approaches described other than the examples given. Again you only need to address 1 of the 5.

Five most frequently used and dependable strategic approaches to setting a company apart from rivals, building strong customer loyalty, and winning a competitive advantage are:

1. A low-cost provider strategy- achieving a cost-based advantage over rivals.
2. A broad differentiation strategy- seeking to differentiate the company’s product or service from that of rivals in ways that will appear to a broad spectrum of buyers.
3. A focus low-cost strategy- concentrating on a narrow buyer segment (or market niche) and outperforming rivals by having lower costs and thus being able to serve niche members Example (private label manufacturers of food, health and beauty products, and nutritional products)
4. A focused differentiation strategy- concentrating on a narrow buyer segment and outcompeting rivals by offering customized attributes that meet their specialized needs and tastes better than rivals
5. A best-cost provider strategy- giving customers more value for the money satisfying expectations on key quality features, performance, and/or service attributes while beating their price expectations.

Answer 1

Let us take the example of first type of strategy i.e.

A low-cost provider strategy achieving a cost-based advantage over rivals.

D - Mart is probably the best example of this strategy. It has multiple branches across all the Tier-1 and Tier-2 cities in India.

This supermarket provides you with the best market price compared to any other store. Doesn't matter whether it's a small grocery store or a multiple branch departmental store nobody can actually come close to prices given by D-Mart.

It gives discounts on products like deodorants and stationery products which no other store would ever give.

The prices are at least 8-10 % less in any product category than any other store. Even E-Commerce platforms like Amazon and flipkart are loosing the battle against D-Mart.

The theory is very simple. D-Mart has such a big customer base across the nation that it can get best prices from any supplier of any category.

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