Ch 10 Business Strategies

In chapter 10 the author writes about two basic business strategies. One focuses on lowest-cost which is the commitment of a business offering a service or product at the lowest possible price. This is the type of business strategy used by companies such as Wal-Mart. With the attempt to beat out its competitors such as target, k-marts and even some grocery stores Wal-Mart is usually the leader in producing low prices time after time. The second and most popular business strategy is differentiation. Through this strategy business focus on pinpointing a particular quality or unique service offered by the business. This is a prime example of what I learned in my business marketing class about niche marketing. By focusing on one specific need of the clientele the business is able to try and be the best in that niche. Such as the example in the book with Volvo. If customers first and primary concern with a vehicle is safety then Volvo would be the best place to look because that is what they specialize in. These two strategies are what make or break a business, Wal-Mart has managed to maintain low prices while still staying in business. Where as niche marketing may sometimes be a hit or miss business concept.