Cost Leadership:
I would like to say Costco is the cost leader in the selling of grocery items market. Costco combines warehouse, wholesellers and retailers into one mega store. The whole distribution channel is happen in one place. It can save the time and money in the managing and marketing the hundreds of items carrying by Costco. The money saved in this operation can benefit to the consumer.
Differentiation:
Apple Computer differeniate themselves from other competitor as Apple's products are high quality and more advance in technology. Example like iPod and the current iTouch are markted as high quality and more advance in the market. Of course the price is more expensive. Many computer production companies are 'imaging' iPod to market their 'iPod like' MP3 and MP4 products in order to get a piece of cake from the market. But the Apple Computer is the leader.
Focus:
Starbucks specialized on specialty coffee. The cafe mainly serving the consumer of coffee market. We can say Starbucks is serving a niche market.However, this niche is so big that Starbucks earns a lot from the coffee market. Starbucks is smart that she is not just selling specialty coffee, her is also creating a new coffee drink culture and Starbucks can meet what the high end coffee drinkers expectation and match their attitudes. But we still regards Starbucks=specialty coffee.
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3 comments:
I like the apple example. Thats definitely true, how they use the differentiation strategy. This is true especially in respect to computers with Windows. The commercials with the IBM and the Apple guys show this very well.
I think that your example of Costco is true because they have positioned themselves a cost leadership warehouse. I think that the only problem with Costco is that since they try to save cost on operations sometimes they do not offer the quality that consumers actually look for. From experience I can say that the difference in quality between Costco and BJ's is enormous. They should concentrate more in applying a strategy to offer not only low prices but also quality and customer service.
you think that wal-mart and costco would ever bump heads?
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