Lesson Summary. Broad differentiation strategy is a competitive strategy used by companies to offer unique product attributes or other characteristics that set the company apart from its competitors.
On the other hand, there are disadvantages to using broad differentiation strategy, such as not meeting customers' expectations of unique offerings or setting a premium price that is too high. To unlock this lesson you must be a Study.com Member.
In approximately two to three paragraphs, write an essay that defines differentiation as a business strategy and explains specifically how broad differentiation is unique. Also make sure that your essay discusses the origins of the broad differentiation strategy.
It's a strategy that works better for larger companies than smaller ones. It's particularly useful in a competitive industry or marketplace. For example, it works well in markets with a broad range of consumer preferences. In these markets, there may be opportunities to set the products apart from competitors.
in which one of the following market circumstances is a broad differentiation strategy generally not well suited? When the products of rivals are weakly differentiated and most competitors are resorting to cleaver advertising to try to set their product offering apart.
Generally, a differentiation strategy helps companies provide unique products or services to their customers in a way that helps set the brand apart to gain a competitive advantage with a smaller specific group of consumers or with a broader market.
The firm that employs a broad-differentiation strategy is seeking to have products and/or services that appeal to a broad spectrum of buyers through differentiation. Today's examples include brands that are employing a “masstige” or a “prestige for the masses” approach. Apple and BMW, are example brands.
What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is: their concentrated attention on serving the needs of buyers in a narrow piece of the overall market.
A broad marketing strategy suggests that a single message, pushed to a large audience via broad reach media will sell more products and net a higher return than a more targeted approach.
Broad Differentiation StrategyAbility to apply premium pricing to products or services deemed by consumers as different.Increased customer loyalty because of the 'unique' product or service offering.Better sales because consumers are wowed by the product being offered.More items...•
In this article, we discuss how such industry leaders as Amazon, Apple and 3M, use differentiation strategies to achieve profitability and customer loyalty.
Some firms using a focused differentiation strategy concentrate their efforts on a particular sales channel, such as selling over the internet only. Others target particular demographic groups. One example is Breezes Resorts, a company that caters to couples without children.
Examples of Differentiation StrategiesApple. While there are tons of tech companies out there, Apple has successfully differentiated its products over the years through innovation and product design. ... Amazon. The ecommerce giant is at the top of everyone's list when you need something. ... Lush. ... Emirates. ... Chipotle. ... Hermes.
Which one of the following generic types of competitive strategy is typically the "best" strategy for a company to employ? A low-cost leader's basis for competitive advantage is: meaningfully lower overall costs than rivals on comparable products.
When a Low-cost Provider Strategy Works Best. A competitive strategy predicated on low-cost leadership is particularly powerful when: Price competition among rival sellers is especially vigorous. Low-cost providers are in the best position to compete offensively on the basis of price and to survive price wars.
A low-cost provider strategy becomes increasingly appealing and competitively powerful when... price competition among rival sellers is vigorous. A low-cost provider's basis for competitive advantage is... Lower overall costs than rivals with similar product offerings.
Broad differentiation is a strategy that is applied across an industry, appealing to a broad range of shoppers. It's a strategy that works better for larger companies than smaller ones. It's particularly useful in a competitive industry or marketplace.
A differentiation strategy employed by a brand or business is designed to set that brand or business apart. They do that by developing products that offer unique attributes that customers want, creating products or services that consumers view as superior to or different than the competitors' products.
Here are some of the benefits for companies using a broad differentiation strategy: Ability to apply premium pricing to products or services deemed by consumers as different. Increased customer loyalty because of the 'unique' product or service offering. Better sales because consumers are wowed by the product being offered.