Question

Using one of Porter’s Generic Strategies, describe how you will position daycare center in the market: low cost or differentiation or both? Why? What will be its competitive scope? Why?

Answer 1

How to position daycare center in the market:

One of the best ways to position daycare center in the market is by following differentiation strategy.

By following daycare strategy, it means highlighting the extra and unique services being offered by the daycare, which is not provided by others in the market. Making the people aware about the different, unique and new services provided by the daycare, will attract more customer base and will help in positioning the daycare in the minds of the people.

Following differentiation strategy will put more impact on the minds of the people and will help them remember the daycare for longer period of time, due to the new type of unique services being rendered.

Its competitive scope:

By competitive scope of any business, we mean how far or more of market the business is planning to target. The competitive scope in case of using differentiation strategy will be broad.

Daycare will focus on serving wider market if offering unique services. It will want to make more people aware about the services they are offering, hence wider competitive scope.