Thethree basic strategies that companies adopt to compete are (1) low costleadership strategy, (2) product differentiation strategy, and (3) focusedniche strategy. Low cost leadership strategydepends on the information system that automate and streamline processesand eliminate costly human labor. The Product differentiation strategy demandssystem that add special featuresor unique add-ons for which customers are willing to pay more. The Focusedniche strategy depends on a special preference for a particular market niche, such as business.
Hybrid model is providing thebest value for the lowest price (competitive advantage). An exampleof Low cost leadership strategy is Wal-Mart which consider as a giant in retailin the USA. It controls Manufacturing, inventory and distribution veryeffectively. Also beside that, it offers the lowest price compared to itscompetitors such as Target.
Wal-Mart always offers low prices because it buys ahuge volume from suppliers.so, it controls price better than its competitors inthe market. An example of Product differentiation strategy is Apple. Applealways uses differentiation strategy, and it uses or owns its platform for itsproduct line. For example, IPhone uses iOS; IPad uses iOS; and MacBook Laptopsuses OS. The platforms are created by apple, and hardware of the devices aredesigned and manufactured to use their own software.
So, there devices would run smoothly and moreperfectly. I think Apple as a company has brought a lot of benefit andsatisfaction to its customers. An example of niche strategy is Lexus, which is a brand of ToyotaMotor company. Lexus considers as a luxury car that competes BMW andMercedes-Benz. Also, it’s considered as a best example for a focus strategy.Toyota placed it for a group of rich people, overall both differentiation and low-coststrategies are applied in this example.
Toyota offers to their customers thesame benefits as competitors, but lowest price for Lexus in the market. An example of hybrid model is IKEA, which uses a combination of lowcost leadership strategy and product differentiation strategy to achieve itsgoal. For the low-cost strategy, IKEA uses low cost at producing their products,so they charge low prices as they can, to keep their competitive advantage. Aswe know that IKEA always focuses on a good quality and designs, but offers alow price at the same time. Companies who apply hybrid strategy are better to adaptto environmental changes in the market.