Critical analysis

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6Strategy.docx

12

Six Basic Strategies

These six basic strategies can be the starting point for your own

custom strategy.

Broad Cost Leader

A Broad Cost Leader strategy maintains a presence in all segments of

the market. The company will gain a competitive advantage by

keeping R&D, production and material costs to a minimum, enabling

the company to compete on the basis of price, which will be below

average. Automation levels will be increased to improve margins and

to offset second shift/overtime costs.

Mission Statement

Low-priced products for the industry: Our brands offer solid value.

Our primary stakeholders are bondholders, customers, stockholders

and management.

Broad Differentiator

A Broad Differentiator strategy maintains a presence in every

segment of the market. The company will gain a competitive

advantage by distinguishing products with an excellent design, high

awareness and easy accessibility. The company will develop an R&D

competency that keeps designs fresh and exciting. Products keep

pace with the market, offering improved size and performance.

Prices will be above average. Capacity will be expanded as higher

demand is generated.

Mission Statement

Premium products for the industry: Our brands withstand the test of

time. Our primary stakeholders are customers, stockholders,

management and employees.

Niche Cost Leader (Low Technology)

A Niche Cost Leader Strategy concentrates primarily on the

Traditional and Low End segments of the market. The company

will gain a competitive advantage by keeping R&D, production and

material costs to a minimum, enabling the company to compete

on the basis of price, which will be below average. Automation

levels will be increased to improve margins and to offset second

shift/overtime costs.

Mission Statement

Reliable products for low technology customers: Our brands offer

value. Our primary stakeholders are bondholders, stockholders,

customers and management.

Niche Differentiator (High Technology)

A Niche Differentiator strategy focuses on the high technology

segments (High End, Performance and Size). The company will

gain a competitive advantage by distinguishing its products with an

excellent design, high awareness, easy accessibility and new

products. The company will develop an R&D competency that

keeps designs fresh and exciting. Products will keep pace with the

market, offering improved size and performance. The company

will price above average and will expand capacity as it generates

higher demand.

Mission Statement

Premium products for technology oriented customers: Our brands

define the cutting edge. Our primary stakeholders are customers,

stockholders, management and employees.

Cost Leader with Product Lifecycle Focus

A Cost Leader with a Product Lifecycle Focus centers on the High End,

Traditional and Low End segments. The company will gain a

competitive advantage by keeping R&D, production and material

costs to a minimum, enabling it to compete on the basis of price. The

Product Lifecycle Focus will allow the company to reap sales for

many years on each new product introduced into the High End

segment. Products will begin their lives in the High End, mature into

Traditional and finish as Low End products.

Mission Statement

Reliable products for mainstream customers: Our brands offer value.

Our primary stakeholders are bondholders, stockholders, customers

and management.

Differentiator with Product

Lifecycle Focus

A Differentiator with a Product Lifecycle Focus strategy concentrates

on the High End, Traditional and Low End segments. The company

will gain a competitive advantage with excellent design, high

awareness, easy accessibility and new products. The company will

develop an R&D competency that keeps designs fresh and exciting.

Products will keep pace with the market, offering improved size and

performance. The company will price above average and will expand

capacity as it generates higher demand.

Mission Statement

Premium products for mainstream customers: Our brands withstand

the test of time. Our primary stakeholders are customers,

stockholders, management and employees.