And for there to be success with customers or Market, there has to be a clear competitive advantage. A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.2 What are the strategies which provide this competitive advantage Following on from his work analyzing the competitive forces in an industry, Michael Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantage. The four strategies relate to the extent to which the scope of a businesses activities are narrow versus broad and the extent to which a business seeks to differentiate its products The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. By contrast, the differentiation focus and cost focus strategies are adopted in a narrow market or industry. We will analyze in this case study how Tyrrells utilized each of these business strategies to gain a competitive advantage.
Strategy 1, Differentiation: This strategy involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. ...Show more