Hybird Strategy for sustainable growth    Hybird Strategy = cost leadership + differentiation    In today’s market you mig...
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Hybird strategy for sustainable growth

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Hybird strategy for sustainable growth

  1. 1. Hybird Strategy for sustainable growth Hybird Strategy = cost leadership + differentiation In today’s market you might be observing price war amongst competitors due to hyper competition and price sensitivity. There are many companies got locked due to either not play well in price war or not able to meet consumer expectation. Generic strategy play healthy role, but in generic strategy is not suitable in those areas where people want unique products, services and ideas at affordable range. That’s why another introduce new concept of strategy for sustainable competitive advantage that is ‘Hybird Strategy’ Hybird Strategy is the combination of two generic strategy- cost leadership and differentiation. It is also suitable to niche market. According to Womack, Jones and Roos of MIT, USA, this strategy can develop competitive advantages into the marketplace. They studied under 70 Automobile plants throughout the world were engaged in manufacturing of mid-size car. Through this research they found that six plants out of 70 had very low cost and differentiating (very high quality). Due to that they were able to reduce their cost, make loyal workforce, and most important able to survive in competitive world long run. There was one another study in Indian context, which is based on hybrid strategy. Gopalakrishnan and Subramaniam studied on the concept of the combination of cost leadership and differentiation. They were included 158 firms of different sectors in Tamil Nadu. They found four clusters of firms: Cost leaders, differentiators, comprehensive (high on both cost leadership and differentiation) and undeveloped (low on both cost leadership and differentiation). They had concluded their research in such manner that Performance of comprehensive group was high amongst others in terms of revenue, returns on capital, retain more customers and success in new products and services and the performance of undeveloped was worse amongst all. Conclusion -: Organizations who have been combining the cost leadership and differentiation strategy are more profitable amongst others. For example IKEA (differentiate in design + low cost), Toyota (quality – although under pressure + price).Bharti Bhutani www.managementexplorer.com Page 1

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