5 Force Model

Strategic Tool Exercise 6

The Five Basic Competitive Options

Student Name: _______________________

Using the attached sheet, identify three different companies/organizations (one each) that use:

· A Differentiation Strategy (Broad or Focused)

· A Low Cost Strategy (Overall or Focused)

· A Best Cost Strategy

For each example, describe a minimum of three things they do to drive this strategy. Also, for each example, write one or two sentences why this strategy gives this company/organization a competitive advantage.

The Five Basic Competitive Options

Overall Low Cost Broad Differentiation

Focused Focused

Low Cost Differentiation

Best Cost