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bigredhockey55

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tT
发表于 2011-7-11 20:05 | 只看该作者

Competitive Strategies

someone, between, difference, all, leadership
Hello all,

Could someone please explain to me the difference between "cost leadership" & "cost focus", and "differentiation" & "differentiation focus"?

I'm having trouble figuring out the difference in meanings...

 

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economicz

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发表于 2011-7-11 20:05 | 只看该作者
Cost Leadership - Walmart which targets mass market by making goods available at a lower cost.

Cost focus - Family Dollar which provides products to poor urban American families who can not drive to Wal-Mart in the suburbs because they do not own a car

Differentiation - Apple targets the mass market with its iPhone and iPod products with a differentiation strategy based on design, branding and user experience

Differentiation focus - A shop selling expensive perfumes to high net worth clients only

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Uranus08

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发表于 2011-7-11 20:05 | 只看该作者
Oh so the only difference is the size of the target market.... thank you very much for the clear explanation!

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madaochenggong

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发表于 2011-7-11 20:05 | 只看该作者
You could say that but I could only think of the above examples.

Other example in my mind:

Differentiation - Furniture shop selling only wood products. (instead of steel, iron, plastic)

Differentiation focus - Furniture shop selling only Mahogany wood

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yalo

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发表于 2011-7-11 20:05 | 只看该作者
I am coming back over here because I felt I didnt give a proper answer.

Think of not as a size of the market, but a sector/segment you focus on. Instead of the whole you are focusing on a part.

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