3 Competitive Strategies:

Cost Leadership Strategy | Differentiation Strategy | Focus Strategy

For Leader

Cost Leadership Strategy

Objective: To become the lowest-cost producer in the industry while maintaining satisfactory quality.
Focus: Competing based on price by reducing costs through efficient production, economies of scale, technology investment, and tight cost control.
Target: Broad market (mass market) where price sensitivity is high, and customers are looking for the lowest-priced product or service.
Example: Walmart is known for its cost leadership strategy, offering everyday low prices through efficient supply chain management and economies of scale.

For Challenger

Differentiation Strategy

Objective: To offer unique or distinctive products or services that are perceived as valuable by customers.
Focus: Creating a product or service that is perceived as unique or superior in some meaningful way, such as quality, design, features, brand image, customer service, or technology.
Target: Broad market or specific market segments where customers are willing to pay a premium for the differentiated features.
Example: Apple differentiates itself through innovative design, user-friendly interfaces, and a strong brand image, allowing it to command premium prices in the market.

For Boutique

Focus Strategy

Objective: To focus on a narrow market segment or niche within an industry.
Focus Differentiation: Offering a product or service that is unique or specialized within a specific market segment.
Example: Rolex focuses on high-end luxury watches, appealing to affluent customers who value craftsmanship and status.
Focus Cost Leadership: Serving a niche market segment with the lowest costs compared to competitors.
Example: Southwest Airlines focuses on offering low-cost, no-frills air travel primarily within the United States, targeting price-sensitive customers.

The Most Suitable Strategy?

Analyzing the external environment in which a business operates. It helps businesses understand the competitive dynamics of their industry, assess threats and opportunities, and identify sources of competitive pressure.

Outside View

The Five Forces Model

Analyzing internal factors and capabilities that enable a business to outperform its competitors. It focuses on identifying and leveraging unique strengths, resources, and capabilities to create value for customers and achieve sustainable differentiation or cost leadership.

Inside View

Competitive Advantage

Greetings from Altipex.com

Being a passionate believer in Simon Sinek’s “Golden Circle” concept, which consists of three concentric circles labeled “Why,” “How,” and “What.” Everything we do, we start with “Why”.

With over 15 years of experience, we specialize in:

Strategy: where-to-play, how-to-win.
Branding: making a difference.
Marketing: connecting with purpose.

If you require consultancy services, please feel free to contact us.