The low-cost provider strategies of the companies are designed to strive more for achieving overall cost as compared to the rivals and appealing conditions for the broad spectrum of customers. The effective low-cost approaches pursue the cost savings that are difficult to imitate (Kaplan & Norton, 2008). The effective low-cost strategies are designed to avoid reducing product quality under the unacceptable levels. The competitive advantages provide high market share and greater total profits for the underpricing competitors. The larger profit margins in case of the selling products at different prices and they provide a competitive advantage over the rivals. The low pricing sometimes does not get attraction from the new buyers. The rival retaliatory price is further cutting set off a price war and it induces impact on the services provided by the company (Arshed & Pancholi, 2016).

1.      Broad differentiation strategies of Understand the basics of the 5 generic competitive strategies

The broad differentiation strategies are seeking for the company’s product and offering for the rivals. The rivals appeal for the broad spectrum of buyers. The effective differentiation approaches work to fulfil the needs, behaviour, values, and willingness of the buyers and it provides unique services or products. The company incorporate features that are highly appealing for the product offering and sustainability conditions. The higher prices are recouping for the differentiation costs. The advantages of differentiation are premium prices for the products, brand loyalty, and increased unit sales (Kaplan & Norton, 2008).

2.      Best cost provider strategies of Understand the basics of the 5 generic competitive strategies

The best cost provider strategies provide customers with the more valuable conditions of money, product attributes, incorporation of good to excellent attributes, lowest target costs, prices when compared to the offers of rivals, and products that provide comparable attributes (Kotler, Berger, & Bickhoff, 2016).

3.      Focused strategies based on the low-cost services of Understand the basics of the 5 generic competitive strategies

The focused strategies that are based on the low-cost concentrate on the narrow buyer segment and outcompeting of rivals. The process has lower-cost strategies as compared to rivals. Under these strategies, the companies can serve niche members even at the lower price. The focused low-cost strategy is aiming to secure competitive advantages for selling the product at the lower-cost products (Pahwa, 2019). The concentrate of the low-cost services in the companies is to narrow the target segment. The main objective of companies is to serve the niche buyer for the rivals. The features of products that are offered are further tailored to the need and taste of the niche buyers (Arshed Norin, 2016).

References of Low-cost provider strategies of Understand the basics of the 5 generic competitive strategies

Arshed Norin. (2016). Enterprise and Its Business Environment. Goodfellow Publishers Limited.

Arshed, N., & Pancholi, J. (2016). Porter’s Generic Strategies. Goodfellow Publishers Ltd.

Kaplan, R. S., & Norton, D. P. (2008). The Execution Premium: Linking Strategy to Operations for Competitive Advantage. Harvard Business Press.

Kotler, P., Berger, R., & Bickhoff, N. (2016). The Quintessence of Strategic Management: What You Really Need to Know to Survive in Business. Springer.

Pahwa, A. (2019, 09 25). Competitive Advantage – Definition, Types, & Examples. Retrieved from www.feedough.com: https://www.feedough.com/competitive-advantage-definition-types-examples/