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Corporate strategy - Coggle Diagram
Corporate strategy
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Benefits - helps to achieve high profit margins as cost per unit is kept low
(+) it can maintain marker price and gain higher market share
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- multiple companies cannot compete on cost
Differentiation strategy - quality - customer service - brand personality - customer experience - after-sales service
benefits - + makes the business stand out - increased customer loyalty - can charge premium pricing if differentiation is based on quality
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porter's - a business should follow 1 of three positioning strategies in order to compete within its market - must have a distinguishable focus in order to compete with rivals
cost leadership - operate at a scale that keeps average costs low
Achieve economies of scale through growth
Have unique access to technology
- Control the supply of a product
To gain competitive advantage : - segmentation strategy - either cost leadership or differentiation - targeting a particular group