Illustrate the use of the three generic strategies- Strategic Management
Strategic Management
Market Dissection
To illustrate the use of the three generic strategies. The matrix shown demonstrates the relationships among strategies (cost leadership versus differentiation) and market segmentation (broad versus focused).
• Hyundai is following a broad cost leadership strategy. It offers low-cost vehicles, in each particular model stratification, that appeal to a large audience.
• Audi is pursuing a broad differentiation strategy with its Quattro models available at several price points. Audi’s differentiation is safety, and it prices its models higher than Hyundai’s to reach a large, stratified audience.
• Kia has a more focused cost leadership strategy. Kia mainly offers low-cost vehicles in the lower levels of model stratification.
• Hummer offers the most focused differentiation strategy of any in the industry (including Mercedes-Benz).
