SGMT 3000 Lecture Notes - Lecture 5: Blue Ocean Strategy, Marketing Mix, Lean Manufacturing
9 May 2016
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Document Summary
Way a company positions itself in the marketplace to gain a competitive advantage. Different positioning strategies that can be used in different industry settings. Two main strategies: cost leadership: lower costs, differentiation: i. e by quality, features, after-sale service. Enable a company to: gain a competitive advantage in commodity markets, undercut rivals on price, gain market share, maintain or increase profitability. Distinguishing oneself from rivals by offering something that they find hard to match. Product differentiation is achieved through: superior reliability, functions, and features, better design, branding, point-of-sale service, after sales service, and support. Advantages: allows a company to charge a premium price, helps a company to grow overall demand and capture market share from its rivals. Efficiency frontier: shows all the positions a company can adopt with regard to differentiation and low cost, has a convex shape because of diminishing returns. Multiple positions on the differentiation-low cost continuum are viable: have enough demand to support an offering.
