• COST LEADERSHIP refers to a startegy by which you compete by BECOMING THE LOWEST-COST PRODUCER IN THE ENTIRE INDUSTRY ('broad scope'). This LOW COST ADVANTAGE can be achived through 

  • • • • • Efficient production methods

          • Economies of scale (bulk buying)

          • Cutting unnecessary costs

          • Uisng lower end materials, eg plastics over metals etc...

Examples: As you can see below most of these companies are able to maintain low costs by focusing on efficiency, bulk buying, and operational optimization while keeping profit margins slim but competitive.

• DIFFERENTIATION refers to a startegy by which you compete by  MAKING YOUR PRODUCT UNIQUE AND DESIRABLE SO THAT CUSTOMERS PERCEIVE IT AS VALUABLE COMPARED TO ITS COMPETITRS in the ENTIRE INDUSTRY ('broad scope'). In other words it TARGETS A LARGE CONSUMER GROUP. This UNIIQUENESS ADVANTAGE can be achived through:

  • • • • • Strong branding

          • Superior product quality or features

          • Innovation & excellent customer service

Examples: As you can see below most of these companies have very strong competitors and yet manage to stay unique through making their products unique AND CHARGE PREMIUM PRICES, for instance Apple stays ahead through offering premium designs, innovation, and a seamless ecosystem of related products. 

• COST FOCUS refers to a startegy by which you compete by BECOMING THE LOW-COST PROVIDER FOR A SPECIFIC NICHE MARKET (focused-scope'). This LOW COST ADVANTAGE can be achived through

  • • • • • Target a Specific Market Segment (e.g., budget travelers, low-income shoppers, students).

          • Minimize Costs (no-frills services, limited product variety, bulk purchasing).

          • Offer Competitive Pricing (undercutting larger competitors in the niche).

          • Operate in a Geographic or Product-Based Niche (e.g., Ryanair in Europe, Tata Nano in India).

Examples: As you can see below most of these companies are not 'Taking over the world' yet they lead in their specific niches

• DIFFERENTIATION FOCUS refers to a startegy by which you compete by OFFERING UNIQUE PRODUCTS THAT APPEAR DESIRABLE COMPARED TO COMPETITORS WITHIN A SPECIFIC NICHE MARKET ('focused scope'). In other words it TARGETS A SPECIALISED CONSUMER GROUP WITH UNIQUE NEEDS. This FOCUSED UNIIQUENESS ADVANTAGE can be achived through:

  • • • • • Targets a narrow customer segment instead of the mass market.

          • Premium pricing based on quality, exclusivity, and branding.

          • Highly specialized products/services with limited substitutes.

          • Strong brand loyalty due to niche appeal and uniqueness.

          • Often involves craftsmanship, innovation, or personalized service.

Examples: As you can see below most of these companies are HIGH-END focusing on HIGHER-INCOME INDIVIDUALS, fashion lovers etc... they are all niche compared to companies such as Apple and Tesla