3 Strategy Options

Cost sensitive customers

Use cost adv over competitor

Impact on purchasing, distribution, overhead

Not identify true Cost Driver

eliminate essential features in G & S

Special features of G & S that Customer Value

e.g. good service, special feature, comlete pdt line, instantaneous availability, pdt reliability, good quality

Diff sth not boost Performance/ lower Cost of Cust.

Diff. sth Cust not see Value

Imitation/knock off from competitors

Overdiffertiating, over charging

focus on character of G & S, ignore important psychological factors

Diff among segments

Identify Changing need of niche n dev skills to serve them

e.g similar needs, specialised g & s, or knowledge

Niche not large enough to have profit

larger competitor enter market to erode it

hard to keep cost down

Early success - drift away from core strategy - alienating cust, lost identity

respond quickly to cust need

flexible, willing to change

constant search for new market segment

build & defend market niches

erect switching cost by personal service

innovative