Competitive Strategy

Competitive strategy is the way that company chooses to compete. It’s a thinking process winch ends with actions.

A process (thinking + action)

Competitive advantage: there are 2 competitive strategy types;

a. Reduce cost: Standardization: mass production is the production of large amounts of standardized products, including and especially on assembly lines. With job production and batch production it is one of the three main production methods.( clothes, food, healthcare products..)

 It’s an internal competitive advantage.

b. Differentiation it aims to be different in the market, it’s based to customer’s perception like luxury products or services.

 It’s an external competitive strategy

The way to differentiate:

The types:

 R&D department (more innovation)

 Exclusive distribution rights

 After sales service

To be successful, the condition of the differentiation strategy is to have a costumer how is wiiling to pay the difference.

• Customer Intimacy: A brief definition (by Michael Treacy and Fred Wiersema 1993):

“A marketing strategy, where a service supplier or product retailer gets close to their clients. The benefits of greater customer intimacy for a business might include improved highly tailored problem solving capabilities and greater adaptation of products to customer needs, as well as higher customer loyalty levels.”

From http://www.businessdictionary.com/

Customer Intimacy: The result of marketing evolution

The idea that companies succeed by selling value is not new. What is new is how customers define value in many markets. In the past, customers judged the value of a product or service on the basis of some combination of quality and price. Today’s customers, by contrast, have an expanded concept of value that includes convenience of purchase, after-sale service, dependability, and so on.