Strategic Strategy: Competitive Strategy In Business

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COMPETITIVE STRATEGY The strategy process should follow 4 developing topics: 1. Cost Leadership Cost leadership is the first competitive advantage businesses often attempt to gain. Cost leadership as an advantage occurs when a business is able to offer the same quality product as its competitors, but at a lower price. Cost leadership can occur when a company finds ways to produce goods at a lower cost through the perfection of production methods or by the utilization of resources in a more efficient manner than competitors. Other factors, such as proprietary technology, can also factor into this type of advantage. Cost leadership may be classified as an offensive strategy, whereby businesses attempt to drive competitors out of the market…show more content…
The advantage gained by this type of strategy is that it allows the business to further distance itself from its competition by, in some sense, maintaining a competitive advantage it has gained. Therefore, this strategy is closely related to differentiation and cost leadership because it is a method used by businesses to keep those advantages in place once they have been attained. Whereas the other two strategies are more offensive in nature, this strategy becomes an actual advantage as it becomes increasingly difficult for so-called competitors to offer any real opposition to the…show more content…
Defining the Target Market and having a potential client profile is critical to success as this result is key to achieve three basic benefits: • Save time by finding the right way to promote the item. • Cost saving by knowing what interests our company/clients.. • Development of an offer based on the interests of the defined target. We need to consider who are we going to sell our products or services. In order to be able to correctly classify the segment to which each product is directed, it is important to make a list to know the type of people you want to "seduce". Thanks to the definition of the target within our marketing plan we will avoid directing our actions to the whole world, which can be a waste of time and money. The following aspects will help the company to have a better idea of their potencial client profile. ✴ Age ✴ Idiosyncrasy ✴ Social Status The information needed to build that profile will be given by both internal and external sources, considering internal all the aims of the company directors together with information gathered by bank data specialist such as or

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