For area of the market and keeps

            For a
multi-national company, the best types of competitive strategy to adopt would
be Cost leadership as well as Differentiation focus strategy.

 

For example, an organization, such as Microsoft, could
make a commodity specifically built for gamers like a specialized headset utilized
for online gaming.

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Differentiation
focus: Like the cost focus strategy, this type of strategy
also zeroes in on a specific population area of the market, but instead of
being the cheapest seller of a product or service, it tries to market that
product to the specific area as a unique product or service, this way
differentiating itself from one or more competitors.

 

For instance, a service provider, like MTN, could
choose to focus its services on a particular town or city and then strive to be
the least expensive in the town only. This kind of strategy enables firms to
satisfy consumers and gain popularity.

Cost
focus: This type of strategy is like the cost leadership
strategy aside from the fact that it concentrates on a specific part of the
market, also known as the ‘niche’. The company concentrates its efforts on a
specific population area of the market and keeps its products low priced in an
attempt to establish itself as the cheapest seller in that specific market
area.

 

Again, this is another type of competitive strategy
that large companies and firms would most likely adopt due to the large
investment of resources in the research and development of new products.

Differentiation
leadership: This could also be called the “Separation technique”.
With this sort of competitive strategy, companies offer a wide array of one of
a kind and diverse goods or services. Firms can target at achieving market
leadership because adversary firms will not be able to surpass the company’s
standards.

 

This type is typically only utilized by large
companies, smaller companies cannot take part in this type of competitive
strategy due to the involvement of economies of scale.

Cost
leadership: This type of strategy involves the firm striving to
become the most minimal cost producer of a certain commodity in the industry by
producing in extensive scale which allows the firm to achieve economies of
scale. Then, the firm sells the cheaply made products to consumers at the
lowest markup price possible thereby making it harder or virtually impossible
for other competitors to compete against.

4.     Differentiation
focus

3.     Cost
focus

2.     Differentiation
leadership

1.     Cost
leadership

Types
of Competitive Strategy

Competitive strategy is characterized
as the long-term operation of a firm or company which will allow it to achieve
an advantage over its other contending firms and companies in its region of
production. This strategy involves the use of negatively showcasing a rival
company’s product with the goal of turning the consumers attention away from
the competition.