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Business Strategies
(Achieving Competitive Advantage –the ability to earn…
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Segmentation
Industry Segmentation
1.The division of an industry into subunits for purposes of developing competitive advantage
2.Each segment of an industry may differ in structural attractiveness (differing influence of five-forces)
1.Industry segmentation is broader than market segmentation.
- Industry segmentation combines buyer purchasing behavior with the behavior of costs, including both production costs and the costs of serving different buyers.
1.Industry segmentation encompasses the entire value chain.
2.It is the basis for the choice of focus strategies, since it exposes segments that are poorly served by firms targeting broader segments
Market Segmentation
1.Market segmentation is concerned with identifying differences in the buyer behavior, allowing a firm to match its capabilities with distinctive products and related marketing programs.
2.It focuses on marketing activities in the value chain.
Focus / Niche Strategies
1.concentrated attention
2.special requirements, or unique needs,
3.Develop unique capabilities
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