preview

Difference Between Differentiation And Cost Leadership Strategy

Good Essays
CHAPTER I
INTRODUCTION
Everybody is looking for prospects, clients and customers. In this challenging new economy you need every advantage you can get, especially in business. It is one of the crucial things that company should have as it is an advantage over competitors gained by offering consumers greater value providing greater benefits of product. However, we have to learn more of this advantage to create a competitive business strategy in order to answer the constantly increasing market competition (Grant, 2010).
The company should have their own advantages to lead the competition and be well known to people that will lead in earning high profits as it is very important to study and formulate unique advantages to have edge with other company.
…show more content…
Differentiation strategy is where a company decides to choose a certain attribute of the product to focus on. In order to make this strategy work you have to select an attribute that a big enough section of the market care about enough in order to pay a premium price for your product. The second strategy is the cost leadership where the company has decided to create the cheapest product on the market. This strategy requires the product to be commoditised and take advantage of the economies of large scale. Usually there can only be one cost leader within an industry. When you choose the cost leadership strategy, you must ensure that your product meets the minimum requirements of the market. If your product does not meet these requirements, you will be forced to drop your prices even lower (Brown,…show more content…
Folded and Hung is known to other people because of their different designs and styles. Identifying the best advantages over other boutiques to be recognized by the public will be a great source of revenue for the store.
Folded and Hung faces a new challenge because of the entry of H&M, Uniquelo and Forever21. The Store Manager Mr. Mark Anthony Bolando approved the researchers request to do a study about Folded and Hung to help him know what to improve with their products in order to retain their existing customers and to attract new customers.
The research entitled “Perception of Customers on the Differentiation Strategies of Folded and Hung in SM City Bacoor: Basis for Competitive Advantage” aims to help develop better competitive advantage for Folded and Hung over other
Get Access