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Corporate Strategy Types
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Cost Leadership
A strategy where a company aims to become the lowest-cost producer in the industry and is characterized by emphasizing efficiency and scale to reduce production costs. Examples include Walmart and McDonald's.
Differentiation
This strategy involves offering unique products or services with features that customers perceive as valuable and distinct from competitors. Examples are Apple for its innovative technology, and BMW for quality and driving experience.
Focus Strategy
A corporate strategy where a company targets a specific niche market and tailors its products or services to serve that particular segment effectively. Examples include Rolls-Royce in luxury cars, and Whole Foods in organic groceries.
Integrated Low-Cost Differentiation
A strategy that combines elements of cost leadership and differentiation to provide value to customers by offering a range of products at low costs while also differentiating products from competitors. Toyota and IKEA are examples of companies that have successfully implemented this strategy.
Diversification
Diversification is a strategy where a corporation expands into new products, services, or market segments not currently within its existing portfolio. It can be related or unrelated diversification. A related example is Amazon's move from online bookselling to general e-commerce, while an unrelated example is Virgin Group, which has businesses ranging from airlines to health services.
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