Find a company that is an example of differentiation or focus differentiation. Explain why this company is...

Find a company that is an example of differentiation or focus differentiation. Explain why this company is an example. Does this company or the conditions meet the criteria for being appropriate for differentiation or focus differentiation? Explain why or why not. Has this company experienced any of the risks or drawbacks of using either differentiation or focus differentiations? Explain. What has been the impact of this strategy on power? Explain this using the Five Forces Model. Explain the advantages and disadvantages that this company has experienced as a result of following this strategy. Through answering this question, demonstrate your comprehension of and ability to apply the concepts of Generic Strategies and the Five Forces Model.

Expert Solution

A good example of Focus Differentiation is Bournvita which is one of the biggest brands in the nutrition industry.
Bournvita is a great example of differentiation because in a smaller segment having almost a single product it has bifurcated its product based on the age groups i.e. for people less than 10 years of age a different powder is offered, for people greater than 60 years of age the powder is having more calcium in it etc. and hence it has made sure that there is something in it for everyone.
Yes, this company qualifies for being appropriate for differentiation strategy as it has customized its product as per the needs of different clusters.
Yes, this company has faced backlash and drawbacks of being so differentiation focus as in the industry the image became that it has not mastered any one particular product and is mixing ingredients in the powder which are not suitable for consumption of children.
The impact has been very positive on power as it has captured a lot of market as all age groups are covered and has made a loyal customer base for itself.
Five forces model includes treat of new entrant which is almost eliminated as it has gained the most of the market share, threat of substitutes is also there as any new product which is similar but cheaper may attract the customers, Supplier power is huge as lot of suppliers are not there in the market and therefore they can quote their price.

keosha answered 8 months ago

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