For amulti-national company, the best types of competitive strategy to adopt wouldbe Cost leadership and/or Differentiation leadership strategy For example, a company could make a commodity specificallybuilt for gamers like a specialized headset used for online gaming.Differentiationfocus: Like the cost focus strategy, this type of strategyalso zeroes in on a specific population area of the market, but instead ofbeing the cheapest seller of a product or service, it tries to market thatproduct to the specific area as a unique product or service, this waydifferentiating itself from one or more competitors. For example, a service provider, like MTN, couldchoose to focus on a particular town or city and then strive to be the cheapestin the town only. This kind of strategy enables firms to satisfy consumers andgain popularity.Costfocus: This type of strategy is similar to the costleadership strategy except that it focuses on a niche (specific) market. Thecompany concentrates its efforts on a specific population area of the marketand keeps its products low priced in an attempt to establish itself as thecheapest seller in that specific market area.
Again, this is another type of competitive strategythat large companies and firms would most likely adopt due to the largeinvestment of resources in the research and development of new products.Differentiationleadership: With this type of competitive strategy, companiesoffer a wide array of unique and different goods or services. Firms can targetto achieve market leadership because other competing firms will not be able tosurpass the company’s standards. This type is typically only utilized by big companies,smaller companies cannot take part in this type of competitive strategy due tothe involvement of economies of scale.Costleadership: This type of strategy involves the firm striving tobecome the most minimal cost producer of a certain commodity in the industry byproducing in extensive scale which allows the firm to achieve economies ofscale. Then, the firm sells the cheaply made products to consumers at thelowest markup price possible thereby making it harder or virtually impossiblefor other competitors to compete against.4. Differentiationfocus3.
Costfocus2. Differentiationleadership1. CostleadershipTypesof Competitive StrategyCompetitive strategy is characterizedas the long term operation of a firm or company which will allow it to achievean advantage over its other contending firms and companies in its region ofproduction.
This strategy involves the use of negatively showcasing a rivalcompany’s product with the goal of turning the consumers attention away fromthe competition.