When the word “strategy” is said, the listener envisions a hunched someone who is attentive and ready to attack his adversary with focus, discipline, and, most importantly, patience. What are the two most crucial strategies? Let’s take a look.
1. Cost-cutting strategies
Cost Leading Strategy is a strategy in which a company prices its products at the lowest possible cost in order to penetrate and/or maintain its leadership position. The product appeals to consumers who are on a budget. In other words, the firm’s target segment is the price-sensitive class of clients, and all company activities, from raw material procurement to distribution and marketing, are organized accordingly. This strategy can be cost-effective in the long run.
2. Differentiation Techniques
The differentiation strategy is used when a product is distinguished by its distinctive feature or unique selling point (USP) in order to compete and win successfully. Differentiate your product or service, whatever it costs, and sell it at a greater price to customers (usually niche market). It’s a type of business strategy adopted by Apple, a corporation that prides itself on offering customers unique products.