A product or service that an organization’s customers place a greater value on than similar offerings from a competitor. Same like best value product.
The Three Generics Strategies
1. Cost Leadership
Becoming a low-cost producer in the industry allows the company to lower prices to customers.
Competitors with higher costs cannot afford to compete with the low-cost leader on price.
2. Differentiation
Create competitive advantage by distinguishing their products on one or more features important to their customers.
Unique features or benefits may justify price differences and/or stimulate demand.
Ex: i-care by Proton
3. Focused Strategy
Target to a niche market.Concentrates on either cost leadership or differentiation
The value chains- Targetting business processes
§ Supply chain- a chain or series of processes that adds value to product and service for customer..
§ Add value to its product and services that support a profit margin for the firm..
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