Management Essay Example | Topics and Well Written Essays - 750 words - 11

Management - Essay Example These strategies generally are called Generic Strategy in Business. In this strategy is relating with the critical factor of their business, what is the core area of customer attraction low cost, quality or any other attractive factors in their business. Cost leadership is a strategy to provide low cost or average priced product at good quality. This strategy helps the organization to achieve more market share and customer base by lowering the price while maintaining quality and this is one of the key competitive strategies of an organization. Cost leadership strategy’s advantage is that the company can compete in the area of price. Differentiation strategy is another main strategy which aims at providing a special attribute to the product to attract customers. Focus in marketing is a full service promotional agency, and it meets various specific promotional marketing needs by producing quality products with a reasonable price. It concentrates on a narrow segment and tries to achieve either a cost advantage or differentiation. The aforesaid generic strategies are not necessarily compatible with each other. But to attain a long term success, it is better to select only one of the three generic strategies. Otherwise, with more than one single generic strategy the firm will get ‘Stuck in the middle.’ â€Å"In the words of Clark and Clark, market is an area in which the forces leading to exchange of title to a particular product operate, and towards which and from which actual goods tend to travel†. (Marketing Management, Nature, Scope and Importance of Marketing, Sulthan Chand and Sons, 7th Edition, 2002) 1) Entry Barriers - In cost leadership, it indicates the ability to cut the price in retaliation. In Differentiation, it meant that customer’s loyalty can discourage potential new entrants into the market. Focusing strategy clearly stipulates that development of