Sustaining Competitive Strategy is also known as generic competitive strategy that is used in Business Level Strategy making. There are three types of sustaining competitive strategy: Cost leadership, differentiation and Focus Strategy. These strategy are used in different sub business unites (SBU).

1. Business Level Strategy:
Sustaining Competitive strategies
Also known as Generic Competitive
Strategies
“Business unit strategy is about how to
compete successfully in particular markets”.

2. Generic Competitive strategies
• Porter(1980) developed three generic strategies
to help an organization outperform rivals within
an industry, and so successfully position itself
against the five forces.
• These strategies are referred to as generic
because they apply to different types of
organizations in different industries.
• The three generic strategies are:
-Overall cost leadership strategy
-Differentiation strategy
-Focus Strategy.
RAMESH PANT [ MBS IV 2076 NCC ]

3. Overall cost leadership strategy
• Cost leadership strategy
….is an attempt to produce goods or services
with features that are acceptable to customers at
the lowest cost, relative to that of competitors.
….It aims to offer standardized products to
the customers at lower price than the
competitors.
…..It attempts to reduce cost and increase the
market share by providing acceptable products.
…under this, the overall profit increases due to
higher sales irrespective of the lower price.
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4. • Cost leadership strategy
…..costs are minimized with proper
coordination among the functional units of the
business.
…..This strategy is successful when customers are
price sensitive.
You see examples of cost leadership as a strategic
marketing priority in many big corporations such as
Walmart (an American multinational retail corporation
that operates a chain of hypermarkets, discount
department stores, and grocery stores) and
McDonald's (an American fast food company).
While it is difficult for many small businesses to
compete with conglomerates on cost leadership, there
are examples at a local level like Burger House .
RAMESH PANT [ MBS IV 2076 NCC ]

5. Differentiation Strategy
• Differentiation strategy is an attempt to offer the
products Which are distinct in the perception of
customers.
• The differentiation may be based on product
parameters, services back up, promotion and
image.
• The product is differentiated through the unique
product performance features and services,
adopting new technologies or providing detail
information about the product.
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6. Differentiation Strategy can be obtain by;
• Differentiation Based on Price ( give more value
for the price include offering free extras, free shipping or
coupons, Having the higher price point can represent
higher quality, luxury or a personalized experience)
• Differentiation Based on Specialties
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7. • Product or Service Differentiation (As with
high-pricing differentiation-You could have
higher priced products because they use
better materials, are made by hand or are
guaranteed )
RAMESH PANT [ MBS IV 2076 NCC ]

8. • Customer Service Quality
(MBA is better course than other streams )
RAMESH PANT [ MBS IV 2076 NCC ]

9. Focus Strategy
• ….is an attempt to produce goods or services that
serve the needs of a particular competitive
segment.
• Firms adopt a focus strategy when they utilize
their core competencies to serve the needs of a
particular industry segment or a different
segment of a product line, and a different
geographic market.
• Focus strategy intends to serve a particular
segment of an industry more effectively than the
competitors do.
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10. • The companies with focus strategy get
success when they understand the unique
needs of the segment and the competitors
choose not to serve that segment.
• Examples:
- Coca-Cola Company has introduced ‘diet
cola’ to serve the niche market consisting
of diabetic patients.
- Amazon.com for Online Books.
RAMESH PANT [ MBS IV 2076 NCC ]

11. • There can be two types of focus strategy;
- Focused Low-Cost Strategy (entering into a niche
market at a low cost with a unique type of product
that has a special need among the customers)
- Focused Differentiation Strategy (operating a
business with a differentiated product in a chosen
niche market)
RAMESH PANT [ MBS IV 2076 NCC ]

12. RAMESH PANT [ MBS IV 2076 NCC ]