Why would you choose Broad Differentiation Strategy to competing successfully and making profit in your own...

Why would you choose Broad Differentiation Strategy to competing successfully and making profit in your own company? Explain shortcomings (pitfalls) to avoid.

Expert Solution

Why companies choose broad differentiation strategy ?

Broad differentiation strategy is adopted by a company, to be unique to a wide range of customers. in this case, a large number of customers is the focus and those customers consider the differentiation valuable to them.

Broad differentiation strategy provides ways to differentiate their product from rivals , which will lead to company's suuccess . They are

Differences in quality.
Innovation.
Responsiveness to customers.
Responding to customers’ psychological desires.
Wide choice of customers.
Reliability of products.
Availability of spare parts/peripherals/accessories.

Short comings to avoid -

Sustainability of differentiation strategy is an important issue for a company.

If product differentiation cannot be sustained the company may incur huge losses This necessitates the confusing of a consumer survey to determine the needs and preferences of buyers.

Based on the survey results, the company should undertake initiatives to incorporate unique attributes in its products.

The company must try to adopt those differentiation approaches that would be hard or expensive for the competitors to copy

Differentiation has to be linked to core competencies, unique competitive capabilities, and superior management of value chain activities.

Differentiation attributes must be of value to customers. A particular differentiating attribute may seem to the company very valuable and appealing, but if it is viewed by customers as having no or little value, the differentiation strategy will never sustain.

Success depends on careful analysis of buyers’ needs and their perceptions.

It is quite natural that consumers will be interested only in such new product attribute that will give them value.

If the firm fails to consider the consumer’s perspective in terms of the value of the attribute, its differentiation strategy is bound to fail.

keosha answered 4 weeks ago

Which financial strategy would you choose to mitigate risk exposure? In your own words, present an...

Which financial strategy would you choose to mitigate risk exposure? In your own words, present an example using XYZ company.

For AT&T: What is your organizations principal business-level strategy: low cost or differentiation? How successfully is...

For AT&T: What is your organizations principal business-level strategy: low cost or differentiation? How successfully is the organization pursuing this strategy? In what ways does it need to improve its core competences to improve its competitive position?

In your own words, describe the problem solving strategy you would use to find an unknown...

In your own words, describe the problem solving strategy you would use to find an unknown force in a mechanical system

1. Why would a business choose an internal growth strategy rather than an external growth strategy?...

1. Why would a business choose an internal growth strategy rather than an external growth strategy? 2. What industry conditions would be most likely to lead a firm to pursue external growth? 3. In your opinion is an offensive or defensive collaboration more effective as a tool to gain competitiveness? Why? 4. What if a company chooses NOT to align with the dominant design that emerges in the latter stages of the life cycle—but instead chooses to continue to pursue...

If you were to start your own business, which business entity structure would you choose? Justify...

If you were to start your own business, which business entity structure would you choose? Justify why your chosen structure is the best organizational form. Explain the following business structures: sole proprietorship, partnership, LLC, and a corporation. In your analysis address the following for each business structure: Steps to form Personal liability for owners Taxation Advantages and disadvantages Your paper must be three to five pages

State which form you would most likely choose for your own business based on the level...

State which form you would most likely choose for your own business based on the level of risk aversion, experience, financial situation and tax considerations. Explain your decision.

create your own haunted house please 1.Where is your haunted house? Why did you choose this...

create your own haunted house please 1.Where is your haunted house? Why did you choose this location? 2.Is your haunted house “real” in the sense that it is a real home where people once lived? Or, was it made for the purpose of being a tourist attraction? Explain. 3.How many rooms of your haunted house will visitors be able to view? 4.Name and describe each of these rooms. Be as detailed as possible. 5.What does the outside of your haunted...

For this discussion, imagine you are running your own company. Consider how and why you would...

For this discussion, imagine you are running your own company. Consider how and why you would communicate your Corporate Social Responsibility (CSR) strategy with employees and with external stakeholders.

What’s the best strategy you would recommend an organization use to avoid making this mistake in...

What’s the best strategy you would recommend an organization use to avoid making this mistake in implementing a PE initiative?

A. In your own words, why is market segmentation important to strategy implementation? B. Identify and...

A. In your own words, why is market segmentation important to strategy implementation? B. Identify and discuss at least two opportunities and two threats associated with social networking activities on the Internet for the firm with which you are familiar.

Question