What are the two types of competitive?
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A firm's relative position within its industry determines whether a firm's profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus. The focus strategy has two variants, cost focus and differentiation focus. Show
 1. Cost LeadershipIn cost leadership, a firm sets out to become the low cost producer in its industry. The sources of cost advantage are varied and depend on the structure of the industry. They may include the pursuit of economies of scale, proprietary technology, preferential access to raw materials and other factors. A low cost producer must find and exploit all sources of cost advantage. if a firm can achieve and sustain overall cost leadership, then it will be an above average performer in its industry, provided it can command prices at or near the industry average. 2. DifferentiationIn a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs. It is rewarded for its uniqueness with a premium price. 3. FocusThe generic strategy of focus rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others. The focus strategy has two variants. (a) In cost focus a firm seeks a cost advantage in its target segment, while in (b) differentiation focus a firm seeks differentiation in its target segment. Both variants of the focus strategy rest on differences between a focuser's target segment and other segments in the industry. The target segments must either have buyers with unusual needs or else the production and delivery system that best serves the target segment must differ from that of other industry segments. Cost focus exploits differences in cost behaviour in some segments, while differentiation focus exploits the special needs of buyers in certain segments. References
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animals compete? Yes. Animals, or other organisms, will compete when both want the same thing. One must "lose" so the winner can have the resource. But competition doesn't necessarily involve physical altercations. CompetitionCompetition is a relationship between organisms that strive for the same resources in the same place. The resources might be food, water, or space. There are two different types of competition:
Interspecific Competition and ExtinctionInterspecific competition often leads to extinction. The species that is less well adapted may get fewer of the resources that both species need. As a result, members of that species are less likely to survive, and the species may go extinct. Interspecific Competition and SpecializationInstead of extinction, interspecific competition may lead to greater specialization. Specialization occurs when competing species evolve different adaptations. For example, they may evolve adaptations that allow them to use different food sources. Figure below describes an example.
Specialization lets different species of anole lizards live in the same area without competing. Watch the beginning of the following video to learn more about competition. Summary
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What are 2 types of competitive strategy?4 Types of Competitive Strategies. Cost leadership strategy. It suits large businesses that can produce a big volume of products at a low cost, and that is why Walmart implemented this strategy. ... . Differentiation leadership strategy. ... . Cost focus strategy. ... . Differentiation focus strategy.. What are the types of competitive?There are four types of competition in a free market system: perfect competition, monopolistic competition, oligopoly, and monopoly. Under monopolistic competition, many sellers offer differentiated products—products that differ slightly but serve similar purposes.
What are the two types of competition in business?Competition can be either direct (competing by selling the same products) or indirect (competing for the same market). The intensity of that competition, whether direct or indirect, will affect the overall potential for success of your business.
What are the two types of competition in marketing?Marketing Competition Definition & Vocabulary
Direct competitors: Companies who offer the same products and services aimed at the same target market and customer base. Indirect competitors: A company that offers the same products and services, but the end goals are different.
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