Preview of CH4

Presented by Group1
Alba, Benson, Ryan, Perry,
Hany, and Ilhamm
 Reading and Presentation

The differentation Strategy-

Can Macy’s Again Find Ways to Achieve
Success by Implenting this strategy?
 Macy's Inc

The first department store The first retailer in

to offer bath towels in an New York city to hold
array of colors. a liquor license.
 Differentation Strategy

Offering private label brands.

1. Providing unique service.

Stocking trendier product.

Using specially trained expert to staff its perfume and

2.
make-up counter.
Organizing the layout of its stores to promote easy
access to products for customers during their shopping
experience.
 Challenge

70%
The best opportunity department stores is to create
products that set them apart , to give customers a
reason to go.

Merchandise found in department stores like

Macy’s is available from Amazon.
 The North Star Strategy

1. From familiar to favorite

2. Must be Macy’s

3. Every experience matters

4. Funding our future

5. What’s new, What’s next

 Preview of Ch 4
What are the differences among the
cost leadership,differentiation, focused cost
leadership,focused differentiaton,and integrated
cost leadership/differentation business-level
strategies?
Cost Leadership

Company takes on a role of Difficult to implement due to

low-cost product manufacturer requiring the management to
constantly reduce the cost of the
in the competitive market
company’s product catalogue.

Products with adequate

quality, along with lower
Example:
price compared to other
Walmart, Coca Cola, Netflix
competitors which produce
the same product
 What is differentiation?

How?
INNOVATION &OUT OF THE BOX THINKING
CONDUCT EXTENSIVE MARKET RESEARCH
FIND A GAP IN THE MARKET THAT NEEDS
FILLING

PROVIDING A PRODUCT OR SERVICE

WITH UNIQUE ATTRIBUTES
 To summarize differentiation?
“ONE THAT SOLVES A PROBLEM
THAT NO ONE ELSE DID”

Example of differentiation

COSMETIC BRAND
ONLY HANDMADE PRODUCT
ADVOCATES OBSESSED WITH THE PURITY
KNOWING THAT ITS CORE BUYERS VALUE
 Cons &Pros

Cons Pros

CUSTOMER’S LOYALTY HIGH COST

LESS MARKETING TOO DIFFERENT COULD
EFFORT BE BAD
ADJUSTABLE PRICING SMALL NICHE MARKET
Focused Cost Leadership
Strategy
1 Target Specific Segment
This strategy focuses on a narrow market segment, aiming
to be the low-cost provider in that niche.

2 Streamlined Operations
The firm concentrates on efficiency, minimizing costs, and
specializing in a limited product range to achieve economies of
scale.

3 Differentiation Limitations
Due to the narrow focus, there is less emphasis on product
differentiation compared to the broader cost leadership
strategy.
Focused
Differentiation Strategy
Offers niche products/services tailored to the
unique preferences of a particular buyer group.

Customizes its differentiation approaches for the

specific target segment.

Develops specialization and exceptional

reputation within its niche market.

Potentially charges very high premiums due to

exclusivity.

For example: Tesla and Lululemon

 Integrated Cost
Leadership/Differentiation Strategy
1 Combines cost leadership and 2 Aims for low costs and
differentiation strategies. differentiated offerings.

3 Appeals to broad market with competitively 4 Requires investments in efficient

priced but distinctive products/services.
operations and innovation.

5 Targets customers wanting value

6 Reduces costs while differentiating
through low price and differentiation.
products/services.

7 Necessitates excellence in operational

efficiency and innovation.
 Conclusion
Selecting the appropriate business-level strategy is
crucial for a company's success. Each strategy - cost
leadership, differentiation, focused cost leadership,
focused differentiation, and integrated cost
leadership/differentiation - has unique advantages and
trade-offs. The optimal choice depends on the firm's
capabilities, market conditions, and long-term goals.

Careful analysis of the competitive landscape, customer

preferences, and internal resources is needed to
determine the best fit. Companies should also remain
flexible, as market dynamics may require a shift in
strategy over time. The key is to align the strategy with
the organization's core strengths and competitive edge.
Question
Time