Strategic Management Assignment Example | Topics and Well Written Essays - 2250 words

Strategic Management - Assignment Example The price-based strategy is further divided into two strategies, one is the no frill strategy and the next is low price strategy. The ‘no frill’ strategy is a combination of low price, a low perceived product and also services and focus on the price sensitive segment. In the case of low price strategy, it seeks to achieve lower price as compared to its competitors and at the same time try to maintain a similar product to those of that of its competitors. If a business unit decides to achieve a competitive advantage through a low price strategy, it gets an option of two choices, firstly to identify and focus on a segment which is unattractive in the eyes of the competitors and in a way avoid the competition and secondly competition based on pricing. The next strategic choice is the differentiation strategy which aims to provide products the offers which tends to benefits differently from that of its competitors and which is valued by its customers. The main aim is to achieve a competitive advantage by adopting the differentiation approach. Differentiation approach can be attained either through hybrid strategy or focus strategy. In hybrid strategy, the firm simultaneously seeks to achieve differentiation and also a price lower than its competitors. In focus strategy, it tends to provide a high perceived product which benefits a premium price for a niche market segment (Johnson 2008, p. 245-251). Toyota the largest manufacturing company in the world has adopted the hybrid strategy.