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Unit Ii (3)

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The five competitive forces that create vital opportunities and threats for organizations are; (1) low-cost strategy, (2) best-value strategy, (3) differentiation, (4) low-cost focus strategy and (5) best-value focus strategy. David, Fred R. (2011). Strategic Management: Concepts and Cases, Custom Edition. Pg. 151-155 Upper Saddle River, NJ: Pearson Low-cost strategy offers products and/or services on a broad scale at the lowest price on the market. The best- value strategy offers products and/or services on a large scale at the best price value as compared to rivals that sell similar products and/or services. The strategy of differentiation is directed towards those who care more about the uniqueness of certain products rather than its price therefore the products and/ or services are unique throughout the industry. The low-cost focus strategy only provides products and/or services to a small group of customers at the lowest price on the market. The best-value focus strategy offers products and/or services similar to differentiation by offering the lowest price value on the market but the focus is only on a small group of customers. David, Fred R. (2011). Strategic Management: Concepts and Cases, Custom Edition. Pg. 151-155 Upper Saddle River, NJ: Pearson I feel that the most important competitive force in the computer industry today is differentiation. Through differentiation the product and/or service is bound to be more competitive. The quality of service improves and is more focused due to the smaller amount of customers. The relationship with the customer becomes one of loyalty and dependability which justifies the higher price as long as the product and/or service remains dependable. David, Fred R. (2011). Strategic Management: Concepts and Cases, Custom Edition. Pg. 151-155 Upper Saddle River, NJ:…...

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