Key points



Total cost leadership strategy

It is required to establish an effective and optimal production scale, where the technology of production facilities and production is the key. At the same time, we must try our best to reduce production costs and control management costs on the basis of experience, in order to minimize the total cost.

1) Higher income. 2) Effectively defend against threats from suppliers. 3) Maintain substantial profits in the fierce market and increase the chances of survival.

1) Need higher market share support.

2) Need to know the cost of competitors, it is difficult to do.

Differentiation Strategy

The aim is to provide customers with unique benefits. This requires enterprises to have strong innovation ability and high sense of innovation. The innovative design and production process of products must have better innovation results, including brand image, technology, product distribution channels and so on.

1) High product prices will bring high profit returns. 2) It is difficult to be imitated. 3) Product sustainable development.

1) It is often difficult to obtain a high market share. 2) High input costs and high risks.

Focus strategy

The resources and strength of the centralized enterprise focus on a specific customer group, the market segment of a product series, etc., so that the enterprise can better serve a narrow segment of customers.

1) Gain a large competitive advantage in a certain market segment and avoid competing with too many competitors. 2) Strong flexibility of strategy

1) The possibility of reducing the cost of scale is small. 2) The business risk is large and is greatly affected by the outside world.