Product Differentiation Strategy Flashcards
The chief executive officer of Urton Corp., Geroge Jones, is preparing for a strategic planning session with the corporation’s board of directors. The company has pursued a product differentiation strategy in the past but is having difficulty maintaining margins due to significant competition from domestic and foreign competitors. Write a memorandum describing the product differentiation strategy and another strategy that might be pursued if product differentiation is not working.
What should the organization aim to produce?
-Providing products that have superior physical characteristics, perceived differences, or support service differences, which allows the products to command higher prices in the market.
The chief executive officer of Urton Corp., Geroge Jones, is preparing for a strategic planning session with the corporation’s board of directors. The company has pursued a product differentiation strategy in the past but is having difficulty maintaining margins due to significant competition from domestic and foreign competitors. Write a memorandum describing the product differentiation strategy and another strategy that might be pursued if product differentiation is not working.
When the strategy is successful?
-When effective, this strategy allows the company to effectively compete with companies that sell lower priced products.
-The company must continue to invest in the differentiating factor.
-Management should consider whether additional investment in product innovation, support services, or brand identity might allow the company to revive the strategy.
The chief executive officer of Urton Corp., Geroge Jones, is preparing for a strategic planning session with the corporation’s board of directors. The company has pursued a product differentiation strategy in the past but is having difficulty maintaining margins due to significant competition from domestic and foreign competitors. Write a memorandum describing the product differentiation strategy and another strategy that might be pursued if product differentiation is not working.
When the strategy is unsuccessful?
-If management believes that pursuing a differentiation strategy is no longer feasible, consideration should be given to a cost leadership strategy.
-Pursuing a cost leadership strategy would involve cutting costs and improving efficiency to allow the company to offer products at lower prices.
