A hybrid strategy aims to achieve both differentiation and low prices relative to competitors. It succeeds by delivering enhanced benefits at lower prices while achieving sufficient margins for reinvestment. If differentiation is achieved, lower prices may not be needed as prices could match or exceed competitors. A hybrid strategy can also be used as an entry strategy by targeting volumes greater than competitors through cost reductions outside differentiated activities, allowing better margins due to a lower cost base.

1. By
G. Shravya Reddy
M. Preethi Bhavani
Rajesh Reddy
Abhishek Yadav

3.  A hybrid strategy seeks simultaneously to
achieve differentiation and low price relative
to competitors.
 The success of this strategy
 ability to deliver enhanced benefits.
 with low prices.
 achieve sufficient margins for reinvestment.

4.  If differentiation can be achieved, there
should be no need to have a lower price,
since it should be possible to obtain prices at
least equal to the competition, if not higher.

5.  Much greater volumes
 Cost reductions are available outside its
differentiated activities.
 Used as an entry strategy

6.  Much greater volumes can
be achieved than
competitors so that margins
may still be better because of
a low-cost base, much as
Tesco is achieving given its
market share in the UK.

8. In developing a global strategy
a business may target a poorly
run
operation in a competitor’s
portfolio of businesses in a
geographical area of
the world6 and enter that
market with a superior product
at a lower price to
establish a foothold from
which it can move further.