Week 5
Hai today i’ll briefly explain wht is in chapter 5..there are 5 strategies that we ought to know from this chapter..there are, low cost provider strategy, broad differentiation strategy, focused low cost strategy, focused differentiation strategy and the last is best cost provider strategy.

first we go to low cost provider strategy..what does it mean by low cost provider? low-cost provider is achieving lower overall cost on products that attract lots of buyers.theadvantages of practicing the strategy is the profit and market share will be increase compared to  underpricing competitors. it means the firm which implement the strategy will gain more profit. the examples of company using  this strategy are mydin, air-asia, dell, mcdonald and many more.

next strategy is, broad differentiation strategy. this strategy is more to produce different products from the rivals that also has lots of buyers. firms which implement this strategy has to make lots of research about the consumer behavior, needs and so forth because it isn’t easy to produce a unique products and at the same time it can capture the needs of a consumer. so, in my point of view the firms which intend to implement this strategy has to allocate a huge budgeting in order to collect info or to do lots of study  to invent the “unique yet parallel with the consumers need”. company use this strategy are FedEx, Rolex, sony, LV and many more.

then, focused low cost strategy. the strategy is concentrate more on a narrow buyer segment and they are competing on cost. which one of them is serving the niche segment with a lower price. the firms which implement this strategy will narrowing its buyers in order to lower the cost of their production and operation.

the forth strategy is focused differentiation strategy. this strategy is more on concentrating on a narrow buyer segment and compete with rivals on which product is more offering and meet the taste and requirement of the narrow or niche segment buyers. the strategy is also offering products or services designed to meet unique preference and need of a narrow segment of buyers. the example are Porsche and Ferrari.

the last strategy is best-cost provider strategy. it also called as hybrid strategy  because they blend low cost and and the elements of differentiation strategy together. the also giving customer more value for their money by satisfying buyers expectation on key quality, features, performance and many more while beating their price expectation.  the objective of the strategy is to provide low price and differentiation types of products.

in my point of view, it is better for a firm or a company to implement best cost provider strategy because it is a perfect combination between low cost and differentiation strategy. it may attract lots of buyer and  may incline the profit more.

that’s all in chapter 5..

salam.