The essay will discuss chapters three and four on functional business strategy and low-cost and differentiation strategies differences; mainly, a company can use practical level strategies to increase its efficiency in several ways. Functional levels can increase quality and innovation for any company. Primarily, functional level strategies can increase quality by collecting marketing information on customer attributes. Designing unique products that reflect customer attributes will also lead to improved quality. Importantly, functional level strategies can lead to practical innovation by adopting an effective positioning strategy. Also, the essay will highlight the operational business strategy and the low-cost and differentiation strategy differences.
functional business strategy and low-cost and differentiation strategies differences
LOW-COST AND DIFFERENTIATION STRATEGIES DIFFERENCES AND IMPORTANCE TO COMPANIES
Companies need to look at low-cost and differentiation strategies differences and determine their importance to their operations. Mainly, in the low-cost strategy, the company with the lowest market price emerges as the winner. Thus, a low-cost company can do more to increase its market share through investments in marketing. Moreover, the company can squeeze its competitors’ profits by paying for better positions in retail stores. Differentiation involves a company getting perceived as offering a higher value than its competitors in terms of its goods. The article will help in understanding the functional business strategy and low-cost and differentiation strategies differences.
low-cost and differentiation strategies differences and importance to companies
BLUE OCEAN STRATEGY AND IMPORTANCE OF INNOVATION
Blue ocean strategy involves the simultaneous pursuit of differentiation and low-cost approach to open up a new market. Moreover, it includes creating and capturing new and uncontested market space and thus makes competition irrelevant. Thus, the concept’s basis is that market structures are not a given, and there is an opportunity for its reconstruction. Mainly, the actions and beliefs of industrial players may help in reconstructing the market boundaries. Most businesses face intense pressure to gain market share, especially when working under the red ocean concept. Lastly, an analysis of the functional business strategy and low-cost and differentiation strategies differences can help companies become competitively strong.
blue ocean strategy and the importance of innovation
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