CA IPCC Strategic Planning By RobomatePlus

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Michael Porter under Generic Strategies. Now, in this particular strategy, we take an example of

Honda. Now, Honda is a believer of given superior quality. So they practice or implement

differentiation strategies. Let’s check what it is. Different strategies offer different degree of

differentiation. Successful differentiation can mean greater product flexibility, greater

compatibility and lower costs, improved service, less maintenance, greater convenience or

more features. A product development is an example of strategy that offers advantages of

differentiation. This strategy should be pursued only after careful study of the market and

the buyer’s needs and preferences. A successful differentiation strategy allows a firm to

charge higher price for its product and to gain customer loyalty because consumers may

become strongly attached to the differentiation features. Special features that differentiate

one’s product can include superior service, better spare parts availability, engineering

design, product performance, useful life or ease of use. A risk of pursuing a differentiation

strategy is that a unique product may not valued highly by the customers, right, to justify the

higher price. That’s the only biggest problem or the risk of this particular strategy. Another

risk is that, the competitors may copy, right, so again that is also a risk. Firms thus find

durable sources of uniqueness that cannot be imitated quickly by rivals.

Next we see, if a firm creates special features demanded by the customers who are willingly

to pay more, right, increases. 3 years warranty given by General Motor cars, longer life

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