2. Strategic Planning for Competitive
Advantage
• Strategies :
– Cost leadership
– Differentiation
– Niche strategy
– Altering the industry structure
– Creating new products and services
– Improving existing product lines and service
3. Strategic Planning for Competitive
Advantage (continued)
• Other Strategies :
– Growth in sales
– First to market
– Customizing products and services
– Hiring the best people
– Innovation
4. Cost Leadership
• Obtain inexpensive raw materials
• Create efficient operations
• Design products for manufacture
• Control overhead costs
• Avoid marginal customers
Chapter 2 Version 6e 4
5. Differentiation
Competitive Advantage
Advantage achieved when a firm
provides something that is unique
and valuable to buyers beyond
simply offering a lower price
than the competition.
Chapter 2 Version 6e 5
6. Niche Strategy
Advantage achieved when a firm
seeks to target and effectively
serve a small segment of the
market.
Chapter 2 Version 6e 6
