3.1 Case Study: Four Methods of Competitive Advantage

Case Study:

George wants to launch a company that makes high-end handcrafted jeweled watches. However, he is unsure which method is best for him. He realizes that the higher cost of products will be acceptable by his target demographic, therefore he didn't worry too much about adopting a Cost Leadership strategy. A defensive approach did not appear to be appropriate for his company. Following market trends was pointless because high-end jewelry is usually one-of-a-kind. He wanted to think about forming an alliance, but he was only one man with his mills and drills.

He believed that a differentiation strategy would work effectively for him. He may create new designs that integrate new technologies. That would be his differentiation competitive strategy.

Hints:

Strategies can be used and overlapped, even changed, in the future.

Pros and Cons:

This is a great tool to set the tune of the business, however it does little to shed light on the details of the business’ ins and outs.