Generic Strategy

Based on the definitions below, determine which generic strategy most closely fits the business-level strategy of the company you chose. Explain why you believe that this is the case.

These business-level strategies can be classified into one of five categories, based on competitive scope and strategic position.

Cost Leadership: Companies that pursue a cost leadership strategy attempt to compete on cost. They seek to keep company costs low so that their customer prices are lower than their competitors. For example, by minimizing costs and focusing on efficiencies in its supply chain while marketing about its low customer prices.

Differentiation: Companies that pursue a differentiation strategy attempt to compete on what makes them different from their competition. By keeping costs competitive but offering features or aspects that their competition don’t, companies that succeed with this strategy can charge higher prices for their products or services.

Focused Cost: Companies that pursue a focused cost strategy do not compete on price on every product or service. They limit their competitive scope so that while their products or service do not offer the lowest price in the industry, they do in carefully chosen target markets.

Focused Differentiation: Companies that pursue a strategy of focused differentiation attempt to find markets in which a differentiated product appeals to buyers more than those of competitors who are appealing to a broader market.

Blue Ocean Strategy vs. Stuck in the Middle: Companies that pursue a blue ocean strategy attempt to find markets where there is no meaningful competition at all.

What strategy most closely fits, and why?