Cost Leadership:

This is a strategy primarily for achieving low cost leadership among industry

competitors. Can be achieved through low cost supply contracts, overhead expense

control, economies of scale and comprehensive cost-cutting efforts, among others.

Differentiation:

Seeks to achieve superior product attributes and features that are different from

industry competitors. Consumer preference for the company’s product.

Focused:

The development of products and services primarily ensures that the needs and wants of

this market are addressed and that satisfaction is provided

Cost Leadership, Differentiation and focused strategies may be implemented through the ff.

subcategories:

1. Forward integration

This involves gaining ownership or increased control over distributors or retailers.

2. Backward Integration

This involves purchase of or increased control over suppliers.

3. Horizontal Integration

This involves purchase of or increased control over competitors.

4. Market penetration

The objective of this strategy is to increase market share of current products or services in current
markets

through greater and more intensive marketing offers.

5. Market development

This strategy involves the introduction of existing products or services into a new geographical area or

market.

6. Product development

This strategy involves the improvement of current products or services or the development of new
products
with the purpose of increasing sales.

7. Related diversification

This involves introducing new but related products or services.

8. Unrelated diversification

This involves introducing new but unrelated products or services.

9. Retrenchment

Halting or reversing declining sales and profits through cost or asset reduction.

10. Divestiture

Selling a division or part of an organization

11. Liquidation

Selling all of a company’s assets, in parts or as a whole, for their tangible worth