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In: Business and Management

Submitted By akshaykrgupta
Words 6054
Pages 25

Can Micromax make the leap from Indian to global brand?

Faculty Guide: Naveen Coomar

IIFT PT 12-15

What is Competitive Strategy?
Competitive Strategy is defined as the long term plan of a particular company in order to gain competitive advantage over its competitors in the industry. It is aimed at creating defensive position in an industry and generating a superior ROI (Return on Investment).
Such type of strategies plays a very important role when industry is very competitive and consumers are provided with almost similar products.
Before devising a competitive strategy, one needs to evaluate all strengths, weaknesses, opportunities, threats in the industry and then go ahead which would give one a competitive advantage.
According to Michael Porter, competitive strategy is devised into 4 types:

1. Cost Leadership

Here, the objective of the firm is to become the lowest cost producer in the industry and is achieved by producing in large scale which enables the firm to attain economies of scale. High capacity utilization, good bargaining power, high technology implementation are some of factors necessary to achieve cost leadership. E.g. Micromax mobile phones

2. Differentiation leadership
Under this strategy, firm maintains unique features of its products in the market thus creating a differentiating factor. With this differentiation leadership, firms target to achieve market leadership. And firms charge a premium price for the products (due to high value added features) Superior brand and quality, major distribution channels, consistent promotional support etc. are the attributes of such products. E.g. BMW,
3. Cost focus
Under this strategy, firm concentrates on specific market segments and keeps its products low priced in…...

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