Q2. ALTERNATIVE STRATEGIES

An alternative to the generic strategy is the focus strategies. The strategies are normally used in improving performance. The focus strategies have small market conditions but can still be used in big companies. While the cost and the differentiation strategies focus on the wide industry recognition, focus strategies [also known as the segmentation strategy], looks more into concentrating on the requirements of a particular customer, location area, production process stage and the distribution channel. The best thing about this strategy is that it is able to focus on a smaller group of customers. The result of this is that it delivers the company’s services better and satisfactory.

From this strategy the company is able to stand out from competitors since the company is able to meet the customers’ needs. Through this method, the company gets lower costs in the areas of the limited market for their product and services. The strategy is most effective in the situations that have customers with differing preferences. The customers may also have different tastes of the products which make the strategy work out for them. Another situation where it can be applied is the area with customers that have special needs. Through the method, the company is able to satisfy their needs.

Mostly, focus strategy is for small and aggressive businesses and those that have a challenge in the nationwide marketing. This may be because of the lack of resources or the ability to do so. The strategy also works well in a small scale company or businesses that would not require a huge business kind of operation. For a start-up business, it also proves useful before they grow into national companies, they are able to sell their name to customers. This is because they deal with their customers one on one and through this, they are recommended to others and this helps them to grow.

There are many companies in the world that have used this method and it has proven helpful to them. The businesses limit their take on the products and let them customers judge. They have forums where the customers can give their feedback on the products and the services they have provided. According to the consumer’s suggestions and requests the products are made to fit them. This ensures that the business remains effective over a long period by addressing the individual needs.

It is through the customer’s feedbacks that the company is able to serve the consumers with their needs and requirements. They may come up with products and have the consumers choose from the options. This requires the consumer to look for the product that suits their needs. Mostly the company gives options that are mostly and majorly looked for. Some customers go up to the extent of sending their designs to the company to have their exact requirements met. However, the focus strategy has a challenge of narrowing the differences in the market that are limited.

I don’t agree with the statement that pursuing both the cost leadership and the differentiation strategies always leads to superior performance. This is because sometimes when the strategies are focused much makes the business to forget to look at the process of achieving success. For the business to perform it should keep on reassessing the development and the expectations that the customers have on them.

In fact, a business should make sure it comes up with products that are satisfactory. That is, their products should stand out to beat other in the market. This helps in winning over the customers and not to be left out. The developments and the innovations help the business to remain productive and in the market thus improving their performance.