What is a narrow scope strategy?

If a company produces only one type of product, it likely will choose a single market to target. This is called a narrow product-scope strategy. For example, a factory that produces after-market parts for a particular car model must target a specific subset of consumers: the owners of that type of car.

What is strategic tradeoffs?

What Are Strategic Trade-offs? Strategic trade-offs are the “sacrifices” a brand has to make in order to deliver on its positioning. Trade-offs include consumer segments you will not be able to service, service levels you are not be able to achieve, and products that are not a good fit to your portfolio.

Why does strategy require trade-offs?

Trade-offs arise for a number of reasons. Another source of trade-offs is inconsistencies in image or reputation. Trade-offs are pervasive in competition and essential to strategy. They create the need for choice and protect against repositioners and straddlers.

What is broad and narrow scope?

The broad scope normally involves engaging in cost leadership and differentiation strategy. The narrow scope involves getting into focused strategy where focus can be on cost leadership or on differentiation strategy.

What is a broad scope strategy?

A broad-scope strategy: focuses the firm on producing customized products, localized business operations, and high levels of craftsmanship. opens the firm up to many different “fronts” of competition. offers a way of reducing some competition-related risks.

What is fit Michael Porter?

IV. 70). Fit, as per Porter, is the central component of competitive advantage because discrete activities often affect one another. Although fit among activities is generic and applies to many companies, the most valuable fit is strategy-specific because it enhances a position’s uniqueness and amplifies trade-offs.

What is a broad scope?

The range of one’s perceptions, thoughts, or actions: broaden one’s scope by reading. 2. The opportunity or possibility to function or be active: gave her imagination broad scope. See Synonyms at room.

What is the difference between broad and narrow market?

A narrow marketing focus would generally take 1 or 2 of these options and focus on those. By comparison, working on broad marketing requires you to draw on information for a variety of different customer segments, which can be difficult if you don’t have the experience.

What is narrow and broad scope?

The competitive scope can be broad scope and narrow scope. The broad scope normally involves engaging in cost leadership and differentiation strategy. The narrow scope involves getting into focused strategy where focus can be on cost leadership or on differentiation strategy.