ECONOMICS

Detailed explanation-1: -Four generic business-level strategies emerge from these decisions: (1) cost leadership, (2) differentiation, (3) focused cost leadership, and (4) focused differentiation. In rare cases, firms are able to offer both low prices and unique features that customers find desirable.

Detailed explanation-2: -According to Porter’s Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These are: Cost Leadership, Differentiation and Focus.

Detailed explanation-3: -Cost Leadership Strategy. This strategy involves the firm winning market share by appealing to cost-conscious or price-sensitive customers. This is achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive).

Detailed explanation-4: -In summary, the strategies were as follows: Cost Leadership-Minimizing the costs incurred in providing value (product or service) to a customer or client. Differentiation-This means making ones product unique or special, compared to other competitors or substitute products in the market.