Introduction
A well-thought-out general strategy lays out the steps that will be taken to reach a certain goal. A generic strategy places equal emphasis on the methods used to attain its aims (its goals and outcomes) (the resources we have to achieve the objectives). This paper compares and contrasts broad and narrow focus methods while describing a niche product and the main motivations for using the product, as well as the similarities and differences between cost leadership and differentiation.
Similarities and Differences among Generic Strategies
The two strategies are similar in that they help a firm to have a cost advantage and differentiation advantage, which creates value for a firm. The difference is that when a business decides to pursue a cost-leadership strategy, it seeks to produce its goods or offer its services at a lower price than its rivals while maintaining a quality that customers will accept (Islami et al., 2020). One of the best-known instances of a large firm using cost-cutting effectively is Walmart. On the other hand, differentiation is built on offering special value to customers through cutting-edge technology, premium ingredients or components, product features, quicker delivery, and other methods. For instance, Caterpillar is renowned for its tractors’ dependability, global parts availability, speedy repairs, and extensive dealer network.
Broad and Narrow Focus Strategies
An industry-wide cost leadership and differentiation plan is a broad-focus approach. The broad focus strategy is focused on developing unique, affordable items for a wide market. An organization with a broad focus approach is McDonald’s. Conversely, a narrow focus strategy, which encompasses low-cost and differentiation focus methods, targets a certain market sector (Islami et al., 2020). An example of a business that uses a narrow-focus approach is Redbox.
Product Consumed
One of the niche things I have tried is organic milk. Although it costs more, it guarantees a higher standard and is more environmentally friendly. If one chooses organic milk, they can enjoy the nutritional benefits of this food while protecting your family from chemical toxins. Numerous studies have demonstrated that organic milk has more nutrients, better omega-3 fatty acids, and disease-preventing antioxidants than non-organic milk (Islami et al., 2020).
Conclusion
In conclusion, to gain an edge in any market, generic strategies are created. If a company implements a strategy that helps it maintain its competitive advantage and grow its business, it will see above-average results. In order to anticipate their customers’ wants and needs, businesses frequently employ generic techniques. With this it is possible to identify a market niche and introduce or improve a product which ensures a firm is competitive.
Reference
Islami, X., Mustafa, N., & Topuzovska Latkovikj, M. (2020). Linking porter’s generic strategies to firm performance. Future Business Journal, 6(1). Web.