SUMMARY
There were a lot of ways on how company pursues competitive advantage across
its chosen strategies. This includes cost leadership, differentiation, cost focus, and
differentiation. To tackle with, the cost leadership is when a company then eyes for a
competitive advantage by employing tight control over its costs as its goal is to undercut
the competitor. To be able to describe as cost leadership, a company must successfully
reduce expenses in all other parts of the business, including marketing, distribution, and
packaging, without significantly reducing revenue. Further, a company's plan to become
the cost leader in its market or category is called a cost leadership strategy.
The next one is differentiation which happens when the company then achieves a
competitive advantage through having a goal of being more unique in terms of quality,
advertising, or performance, to stand out against other competitors to gain advantage.
Using differentiation strategy, one can obtain a competitive edge in a crowded market by
leveraging the distinctive qualities of your brand. This might be through a combination of
features, a funny digital marketing approach, or providing an affordable alternative to a
well-liked good or service. Making a statement and being different from the crowd is what
matters most.
Additionally, cost focus is described as when a company then achieves competitive
advantage by narrowing down its target market while still utilizing the tight control of cost
leadership strategy to undercut its competitors. Moreover, businesses that try to draw
clients by offering a lower price are using a cost focus strategy. By undercutting the pricing
of their rivals, businesses who employ this tactic seek to provide the lowest possible price
for their goods on the market.
Lastly, focused differentiation is when a company achieves such competitive
advantage by narrowing down its target market while still utilizing the goal of being more
unique than other competitors, as similar to the differentiation strategy, however, only with
more concentration on certain target markets. This further includes offering distinctive
features that satisfy the needs of a certain market which is necessary for a focused
differentiation approach. Similar to a targeted low-cost approach, different contexts call
for varied definitions of narrow markets.