Question

Discuss how Diageo's strategy relates to the cost/differentiation and focus strategies .

Answer 1

Diageo strategy relates to the-

A .Differentiation strategies-the company is using this is strategy to use unique products for their overall customer base and they are trying to charge premium price for this.

Diageo has been focusing on maintenance of a premium segments for the customer who will be wishing for the luxury and the tastes and increasing affluence of the emerging middle class customers who are increasing the use of accessibility of a spirit through flavour extension and packaging and drink formats while they are also trying innovation around various products and they are also going into progressive drinks.

Overall this strategy focused at charging a premium price from customer in response of providing them with premium quality of alcohol and innovative drinks.

B. Focus strategy- focus strategy of the company is maintenance of concentration on a particular segment of the market and innovating and modifying the products according to the needs of the market and focusing on the particular segment.

they are trying to maintain the relationship with the distributor and supplier and maintaining a strong root to the particular segment of the market in order to leverage the local expertise.

they are trying to maintain a command on the distributerhip and supply chain so they are trying to maintain the quality product and ensuring the customer quality product service.