Differentiation Strategy: New Entrants
The Threat of
©2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
buyers
products
Differentiation Strategy: Substitutes
Product
©2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
power of
buyers
substitute
products
Competitive Risks of Differentiation
• The price differential between the differentiator’s
product and the cost leader’s product becomes
too large.
Focus Strategies
•An integrated set of actions taken to produce
goods or services that serve the needs of a
Focus Strategies (cont’d)
•Large firms may overlook small niches.
Competitive Risks of Focus Strategies
• A focusing firm may be “out focused” by its
Integrated Cost Leadership/
Differentiation Strategy
•A firm that successfully uses an integrated cost
Integrated Cost Leadership/
Differentiation Strategy (cont’d)
Flexible Manufacturing Systems
©2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–43
Information Networks
Total Quality Management
(TQM) Systems
Risks of an Integrated Cost Leadership/
Differentiation Strategy