In 2550 words describe the generic strategy associated with

In (25-50 words) describe the “generic strategy” associated with Broad Differentiation.

Solution

Porter generic strategy consists of cost leadership, differentiation and focus. Differentiation strategy refers to the development of product or service that provides unique benefits or features that are valued by the customers.

Broad differentiation strategy is used to appeal broad range of customers. This strategy implement premium pricing and helps in increasing customer loyalty. The advantage of broad differentiation strategy is that it helps in creating value for the brand and product uniqueness. The disadvantages of broad differentiation strategy are the products will be costly, requires lots of research work and might affect the profits because of the competitors. Example - Starbucks.