Page 71 - BA1 Integrated Workbook STUDENT 2018

Strategic options and choice

2.2 Differentiation

 Based on offering better perceived quality/more features than rivals.

 Customers are willing to pay extra for this differentiation.

 The differentiation must be valued by customers and may be real or created
by advertising.

2.3 Focus/Niche

 Focus on a particular buyer group, market segment or section of the product
range.

 Reduces likelihood of reaction from market leaders.

Note that if an organisation fails to adopt one of these three strategies,
Porter stated that they were stuck in the middle and would find it difficult
to gain competitive advantage over rivals.

Illustrations and further practice

Now review Illustrations 1 to 3 and TYU 1 and 2 from Chapter 7 of the text.

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