Question

Give two example of:(and justify them )

1-focus cost leadership strategy

2-focus differentiation strategy

Answer 1

Focused Differentiation strategy: It is defined as the strategy which focuses on the use of product differentiation in the market to attract the consumer base and develop the competitive advantage in the market. Examples

1. Airline offers two modes of tickets for the customers – economy class and business class. Thus these two options provide the focused differentiation strategy for their customers, so that they can have different service options depending to their interest and funding capability. Thus it provides two services/products option to consumers.

2. Retail mobile shop keeps multiple products of cell phones from multiple brands, so that product differentiation helps the consumers to purchase the products suitable to them. This is the focused product differentiation strategy, so that customer buys at-least one of the cell phone product from their shop.

Focused Cost Leaderhip Strategy - The strategy to achieve the success in the business by focusing on the cost leadership approaches in the target market. Following are the examples for the same.

1. China Products In the World: China products in the world are on the strategy of Focused Low Cost. The china produces the products in such a way that they are cheapest in the world, so that they can place or market the product in the world and can get the competitive advantage in the world market. And China is actually gets succeed in exploring this generic strategy in the world market and they developed a brand as china product are focused low cost products in the world. This generic strategy helped China product to win the world business and developed a competitive advantage in the world market.

2. Apple iPhone Cost leadership Approach: The Apple iphone organization used the cost leadership approach in the world market and achieved high growth on the cell iphone products. Apple has kept highest cost for the iPhones and captured the market on the quality and functionality of the iphones. Thus using cost leadership, Apple has captured the world market.