Question

Which one of the five generic competitive strategies most closely approximates the competitive approach that Malibu is employing? Explain your answer.

Answer 1

The low-cost strategy offers low-cost selling products, and it helps to capture the whole market, make the lead from competitors by selling low price products than others.

To apply the low-cost strategy, the company should use low cot resources, increase innovation in the workplace, and reduce processing costs.

The best value strategy offers from matching close competitors to the critical product attribute; the cost providers can best manage cost down and increase the quality level simultaneously. This strategy may beat the low-cost plan where customer diversity makes products differentiate norms; many customers are price sensitive.

From the differentiation strategy, a premium price for products is established, increase the unit sales of the product in the market, and make or improve brand loyalty in the market. This strategy uses higher prices to recoup differentiation costs.

For the focus of low cost and best values, Malibu companies are to concentrate on a particular market and understand the market dynamics, unique needs of customers. Focus strategy helps to develop uniquely low cost and well function products in the Malibu market.

By considering these advantages focus strategies are more approximates the competitive approach that is Malibu is employing because it consists of more positions by simple changes and serves better niche buyers compare to rivals. Malibu companies such as UCLC, Starbucks, and Spacex used these focus strategies.