Mgt 498 Marketing Strategy

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A strategy that states how a company or a business unit will compete in an industry. Cost focus A low-cost competitive strategy that concentrates on a particular buyer group or geographic market and attempts to serve only that niche. Stuck in the middle A situation in which a company or business unit has not achieved a generic competitive strategy and has no competitive advantage. Differentiation focus, like cost focus, concentrates on a particular buyer group, product line segment, or geographic market. This is the strategy successfully followed by Midamar Corporation (distributor of halal foods), Morgan Motor Car Company (a manufacturer of classic British sports cars), Nickelodeon (a cable channel for children), Orphagenix (pharmaceuticals), and local ethnic grocery stores. In using differentiation focus, a company or business unit seeks differentiation in a targeted market segment. This strategy is valued by those who believe that a company or a unit that focuses its efforts is better able to serve the special needs of a narrow strategic target more effectively than can its competition. For example, Orphagenix is a small biotech pharmaceutical company that avoids head-to-head competition with big companies like AstraZenica and Merck by developing “orphan” drugs to target diseases that affect fewer than 200,000 people—diseases such as sickle cell anemia and spinal muscular atrophy that big drug makers are overlooking.16 Cost focus is a low-cost competitive strategy that focuses on a particular buyer group or geographic market and attempts to serve only this niche, to the exclusion of others. In using cost focus, the company or business unit seeks a cost advantage in its target segment. A good example of this strategy is Potlach Corporation, a manufacturer of toilet tissue. Rather tha Differentiation is aimed at the broad mass

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