A focused strategy keyed to differentiation aims at securing a competitive advantage with a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers (as distinguished from a broad differentiation strategy aimed at many buyer groups and market segments). Successful use of a focused differentiation strategy depends on the existence of a buyer segment that is looking for special product attributes or seller capabilities and on a firm's ability to stand apart from rivals competing in the same target market niche.
Tiffany & Co. employs successful differentiation-based focused strategies targeted at upscale buyers wanting products (high value jewelry) with world-class attributes.
Because Tiffany & Co. is known for it's reputation and strong brand name, it can charge premium prices for it's high valued jewelry to only a specific group of customers. Only upscale buyers can purchase Tiffany & Co. jewelry because it is so expensive and is a luxury item.
No comments:
Post a Comment