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Identify an organisation that can be characterized as pursuing a strategy of...

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yaga49 | (Level 1) Valedictorian

Posted April 22, 2013 at 1:35 PM via web

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Identify an organisation that can be characterized as pursuing a strategy of differentiation.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted April 22, 2013 at 1:45 PM (Answer #1)

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Almost every organization pursues a strategy of differentiation to at least some degree.  At the same time, almost every organization tries to keep costs somewhat low.  However, we can identify some organizations that focus much more on differentiation than on cost.  These are often organizations that make relatively high-end products.

For example, most of the auto industry pursues a strategy of differentiation.  There are few ads for cars that emphasize how low cost they are.  But the company that might be most identified with differentiation in this industry is Tesla.  They are making electric, high-performance cars.  Their cars are not cheap and are marketed on the basis of their performance and the fact that they are cutting-edge technology.

We can also say, on the other end of the price spectrum, that makers of video games pursue differentiation.  They do not advertise that their game is the cheapest.  Instead, they market their games based on the level of excitement offered, the realism of the graphics, and other such factors related to the quality of the games.  So, you could identify EA Sports as another organization that focuses on differentiation as a strategy.

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