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Business Strategy - 401 (Final Exam) : Advantage
Business Strategy - 401 (Final Exam) : Advantage
Q2
TATA Motors***
Ans: According to above information TATA NANO follows a “low cost provider
strategy”. Successful low cost leader are exceptionally good they provide
customer “more value for the money”
Advantage:
Pitfalls:
Type of Competitive
Best cost
provider
Focused
Focus low cost
differentiation
Rolex----Focused differentiation
Pitfalls:
Market share is very low EX: Is Bangladesh there are very low, people who
can afford Rolex watch
They cannot give a showroom in a 3rd world country
If they want to make a new product they have to be very much careful about
the product weather the product adapted by customer or not because if they
failed there will be a huge loss as their all products are very expensive.
Advantage
Pitfalls:
Advantage
1. They are providing same standard product like BMW MERCEDEZ AUD
but with a lower price
EX: the price of BMW 5 serises is ! core 40 lakh taka where ase TOYOTA
LEXUS is offering the same standred car at 10 lakh taka only
2. They are providing only limited ammount of product rather than going for
huge range of product and offering best value to their customer
Pitfalls: