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.
Focused cost leadership strategy:Companies targets a narrow segment of a market and provide products or services at the lowest prices relative to what competitors offer.
Broad cost leadership strategy: Companies target a broad market by offering products at prices below their competitors. Amazon is a good example of this strategy. The company eliminates every non-essential that might potentially increase the cost of production so it can offer lower prices.
Focused differentiation strategy:Brands appeal to a narrow (focused) audience by being more relevant and specific to a certain segment of the market than broader-based competitors.
Broad differentiation strategy:Companies target a large market segment, often in their millions using unique product characteristics to gain competitive advantage.
Broad strategies generally target “the masses” while focused strategies are directed towards a niche market, sometimes a tiny fraction of a bigger market.
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