CâU 4

4. What is Sift Cupcake and Dessert Bar’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fits the competitive approach that Sift is taking? Explain.

* Sift Cupcake and Dessert Bar’s strategy is rebranding combined with expansion at the same time.

* Firstly, owners rebrand the business from ‘’Sift a Cupcakery’’ to Sift Cupcake and Dessert Bar’’. Beside familiar dishes like cupcakes, frosting shots, choice for customers will be expanded to new desserts such as cruffles and whoopie cookies,… This reposition will bring Sift Cupcake a competitive advantage to become a family dessert with a broad range of product which differentiates from other competitors.

* Secondly, Sift plans to relocate the Napa store to a larger location with more foot traffic in a nearby shopping center. Expansion to a favorable location will attract a number of customers such as passengers, people after going shopping in the centre,…

* this strategy will help Sift Cupcake and Dessert Bar to gain competitive advantage over their rivalries like Kara’s Cupcake as well as competing with retailers who provide more affordable substitute products.

* After reading and analysis the case, we desire to choose the option BROAD DIFFERENTIATION which we find it most closely fits the competitive approach that Sift is taking. First of all we need to know what is broad differentiation strategy , how it will affect your strategy and what situation which suit this option.

Broad differentiation strategies seek to produce a competitive edge by incorporating attributes and features that set a company's product/service offering apart from rivals in ways that buyers consider valuable and worth paying for. Successful differentiation allows a firm to

(1) command a premium price for its product (

2) increase unit sales (because additional buyers are won over by the differentiating features)

(3) gain buyer loyalty to its brand (because some buyers are...