Comparing and Contrasting the Five Generic Strategies

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MAN 6721 – Business Policy and Strategy Instructor: Dr. LaQuita Gray-Baker Week 3: Individual Assignment February 16, 2013 Comparing and Contrasting the Five Generic Strategies Nadine Patterson Everest University Online Abstract After reading Chapter 5 concerning the different strategies used by companies in competition with each other There will be a comparison explaining how the strategies are similar and a contrasting explain how they are different from each other, and in what situations each strategy works best. Real-world examples will be used with explanations of why the strategy chosen by a particular company works for that company. Reference The five generic strategies are low-cost provider which attracts numerous amounts of customers by selling goods and services lower than the competition. Broad distinction means that the goods and services have what the competition does not have and they serve a large part of the market. Having a focused-cost strategy means that the goods and services are aimed at a special type of consumer whose offerings cost less than competitors. A focused-differentiation strategy is aimed at a special section of the market that caters to the customers’ tastes and what the customers are looking for better than the competition. The best-cost provider gives customers “more value with average to above-average quality compared to the quality of the competition’s product (Thompson, 2012). The low-cost provider strategy aims at a spacious section of the market at right angles to the competitors and charges an overall less cost than competitors. The quality of the goods are acceptable to consumers and there are few frills. These companies constantly look for ways to reduce cost while keeping good quality and not cutting down on essential features. This strategy places more emphasis on the features of their products than

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