Question

If you were CEO of each of the following companies and were thinking about what might be the most effective strategy for your company, which of the five generic strategies (Low -Cost Provider, Differentiation, Best-Cost Provider, Focused Low-Cost or Focused Differentiation) would you select? When thinking about your response refer to the segments on when each strategy works best and the pitfalls of each strategy. Defend your choice by outlining the industry and market conditions that make your strategy choice the most logical and appealing. Indicate pitfalls and/or risks that might be involved in your strategy choice and how you would address them.

* A major fast food chain

* A small U.S. manufacturer of outdoor clothing (ie. ski jackets/pants, outdoor kids clothing, polar fleece clothing)

* A major national convenience store chain

* Netflix. (movie rentals)

* A small, family-owned jewelry store (not in a mall)

Answer 1

A major fast food chain

Low cost and differentiation strategy is well suited to this as it has mass market as their customers.

A small U.S. manufacturer of outdoor clothing (ie. ski jackets/pants, outdoor kids clothing, polar fleece clothing)

Since it has a niche market is should focus more on focussed differentiation to outweigh its competitors.

A major national convenience store chain

Company should try to provide goods with lowest cost .Provide more discounting on their goods.

Netflix. (movie rentals)

More focus on cost .Differentiate in the terms of user experience.

* A small, family-owned jewelry store (not in a mall)

Differentiation to target niche customers