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Strategies for mature businesses

Magazine Competitive Strategies It is difficult for a business to survive without competitive strategies in place. This is particularly the case if the company is contending in markets overflowing with alternatives for consumers. A competitive strategy may be defined as a long-term plan of action that a company devises towards achieving a competitive advantage over its competitors after examining the strengths and weaknesses of the latter and comparing them to its own. Differentiation This strategy aims at developing a competitive advantage by way of making available and marketing a unique product or service — a product or service that is different in some way to what a rival or competitor is offering. For this, you may have to spend a lot for research and development , which you may not be able to afford if yours is a small business. A successful differentiation strategy has the potential to lower price sensitivity and better brand loyalty from customers.
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Concept[ edit ] Michael Porter's Three Generic Strategies Porter wrote in that strategy targets either cost leadership , differentiation , or focus. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources. Porter's generic strategies detail the interaction between cost minimization strategies, product differentiation strategies, and market focus strategies of porters. The breadth of its targeting refers to the competitive scope of the business.
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