STRATEGIC ARUN KARTHIK .

S
MANAGEMENT
      
                                    Low Cost Strategy                                     Differentiation Strategy

BROAD  BROAD
Low coast Differentiation

FOCUSED
Low cost FOCUSED
strategy Differentiation
BROAD LOW COST

• Focused on providing a cost-based advantage over a

broad market group.
• Broad does not mean targeting everybody or the
masses.
• The firm needs to be excellent in leveraging
economies of scale.
EXAMPLE
BROAD DIFFERENTIATION
The firm that employs a broad-differentiation strategy is seeking to have products and/or
services that appeal to a broad spectrum of buyers through differentiation

Use higher prices to recoup differentiation costs. 

The attractiveness of the selected differentiation should be enough that the price of the
product/service would not deter the masses from purchasing it .
Example
FOCUSED LOW COST
A focused low-cost strategy is when the firm focuses on a narrow customer
segment and provides low-cost services and products.

The main objective is to serve niche buyers better than the rivals.

The features of the products offered are tailored according to the need and
taste of the niche buyers.
Example
FOCUSED DIFFERENTIATION
A focused differentiation strategy is when the firm focuses on a narrow segment and gives its
customers products or services with distinct attributes that other firms find difficulty doing

Focused differentiation strategy is most effective when consumers have different preferences or
requirements and when rival firms are not attempting to specialize in the same target segment.
EXAMPLE
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