Question

Upon what sources of competitive advantage may segment-specific, focus, niche, or differentiated product-market strategies be based? Give some illustrative examples.

Answer 1

Segment-specific, focus, niche, or differentiated product-market strategies must be based on sources of competitive advantage such as Localization in Global Markets, Strategic Alliance or Acquisition, Customer Clusters, Company-Wide Market Orientation, Strategic Fit between Marketing and Manufacturing, Human capital etc. These sources are very important to determine the product market strategies employed by the organization in short term as well as long term scenario and must be carefully studied before implementation of particular strategy. For example, in case of General Electric, the company has adopted a segment specific product market strategy because the company is a conglomerate and is involved in manufacturing and distribution of large number of products belonging to different segments, industries, customer base etc and has also done strategic alliances with a lot of companies to gain competitive advantage in different areas and establish its stronghold as well. Hence segment specific product market strategy is most suitable to General Electric.