This method comprises producing 5

low-cost goods with special INTEGRATED To compete for a broad

Rivalry
qualities. The purpose of this Suppliers
approach is to showcase low cost COST customer base based on
Buyers
and distinctiveness as sources LEADERSHIP 1 price
COST New entrants
of competitive advantage at the
same time. It is also an Substitutes
IKEA
LEADERSHIP
illustration of a hybrid Maintain above average
strategy. STRATEGY returns and provide the
lowest price and focus on Ebay
A business that sells low-cost,
one-of-a-kind things that are
internal efficiencies
not available elsewhere. IKEA continually
is a fantastic illustration of
this.

BUSINESS LEVEL 2
DIFFERENTIATION
Similar to a 4
FOCUSED
STRATEGY STRATEGY
differentiation strategy
except it is focused on DIFFERENTIATE
a very narrow segment of STRATEGIES Aims to provide
the market The idea is to make clients valuable,
FOCUSED COST on-0f-a-kind
Common mechanism the consmuer believe
LEADERSHIP to adopt a focused that the product or goods and
3 cost leadership services.
These organizations service is better
Offering unique features compete on price but strategy include: than or unique from
to a small market segment also stand out Focus on serving what the competition
because they focus on a small group of
serving a niche
is providing
customers.
market(small,speciali
Rolls-Royce Checkers must understand Key Features:
zed market)
the small target Innovation
market to cut Branding and
Mercedes Benz
costs to serve marketing
the needs of the Premium pricing
market