Business Strategy Mrs. Wonder Entrepreneurship Class 10/2/2018

1. Business Strategy Mrs. Wonder Entrepreneurship Class 10/2/2018

2. TREAT YOUR Target Market KING AS

4. Why is it important? It affects : • How you advertise • The development of your product or service • How you will distribute your product • The location of your store • Can you think of more? WHO IS YOUR TARGET MARKET? Examples: moms, young children, men, teenagers, health nuts, exercise fanatics, video game enthusiasts, etc…..the list goes on and on!

5. Define your Competitive Advantage

6. BLAH BLAH BLAH BLAH BLAH BLAH BLAH

7. How do you stand out among the rest?

8. Low Price?

9. Exceptional Service?

10. Here’s how it works…

11. What is competitive advantage? A competitive advantage is an advantage over your competition achieved by offering consumers greater value, either by means of lower prices or by providing higher quality, more unique products/services that warrants higher prices.

12. 1 Differentiation

13. Differentiation This strategy typically involves charging a premium (higher) price for the product - often this is to cover the higher production costs and the extra/added benefits provided for the consumer. Differentiation is about persuading customers that your product is superior and more unique than others and thus it is worth it to pay more. Examples of Differentiation Strategy: Mercedes cars;  Bang-Olufsen; Apple

14. 2 Cost Leadership

15. Cost Leadership With this strategy, the objective is to have the lowest cost in your industry. This strategy is typically accomplished by large-scale businesses offering “average" products that don’t differ much from competitor’s products but are perfectly acceptable to the majority of customers. Examples of Cost Leadership: Wal-Mart, Dollar Tree, Target

16. 3 Focused Differentiation

17. Focused Differentiation In the focused differentiation strategy, a business aims to distinguish itself within just one or a small number of target market segments. The special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors who may be targeting a broader group of customers. The important issue for any business adopting this strategy is to ensure that customers really do have different needs and wants - in other words that there is a valid basis for differentiation - and that existing competitor products are not meeting those needs and wants. Examples: any successful niche retailers; (e.g. The Perfume Shop); Tacori Jewelry

18. 4 Focused Cost Leadership

19. Focused Cost Leadership Here a business seeks a lower-cost advantage in just one or a small number of market segments. The product will be basic - perhaps a similar product to the higher-priced option offered by the industry leader, but acceptable to enough consumers. Examples of Cost Focus: Many smaller retailers featuring own-label or discounted label products. Target brand: Up and Up

20. Strategy WHAT’S YOURS? WHO IS YOUR TARGET MARKET? WHAT CUSTOMER NEED ARE YOUR SATISFYING? WHAT IS YOUR COMPETITIVE ADVANTAGE?

21. Resources used in the making of this PPT: http://www.tutor2u.net/business/strategy/competitive_advantage.htm