is an attractive competitive approach whenever buyers' needs and preferences are too diverse to be satisfied by a product that is essentially identical from seller to seller. can produce sustainable competitive advantage if the differentiating features possess strong buyer appeal and can't be copied or easily matched by rivals.
Which of the following are distinguishing features of a best-cost provider strategy?
A competitive advantage based on more value for the money
The most appealing approaches to broad differentiation
involve features or attributes that have considerable buyer appeal and are hard or expensive for rivals to duplicate.
For a best-cost provider strategy to be successful, a company must have
a superior value chain configuration and unmatched efficiency in managing value chain activities.
Striving to be the industry's low-cost provider and achieving lower costs than rivals entails
eliminating or curbing nonessential activities. doing a better job than rivals in performing essential activities.
Successful differentiation allows a firm to
gain buyer loyalty to its brand (because some buyers are strongly attracted to the differentiating features and bond with the company and its products). command a premium price for its product and/or increase unit sales (because additional buyers are won over by the differentiating features).
Which of the following is not a distinguishing feature of a low-cost provider strategy?
The strategic target is value-conscious buyers and sustaining the strategy depends on frequent advances in technology and occasional product innovations
Competitive strategies that provide distinctive industry positioning and competitive advantage involve
choosing between (1) a market target that is either broad or narrow, and (2) whether the company should pursue a competitive advantage linked to low costs or product differentiation.
In which one of the following market circumstances is a broad differentiation strategy generally not well-suited?
When most competitors are using eye-catching ads to set their product offerings apart and build a brand image that is differentiated
A firm pursuing a best-cost provider strategy
seeks to offer more value-adding features than the industry's low-cost providers and lower prices than those pursuing differentiation.