Organizations that practice this strategy incur additional costs in creating their competitive advantage. These costs make up for by the increase in the revenue generated by sales. Also, an organization that uses the differentiation strategy run the risk that competitors will copy their strategy. Therefore, there is a constant demand to be innovative and improve...
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Therefore, there is a constant demand to be innovative and improve. The third strategy is the segmentation or niche strategy. The niche strategy is used when an “organization focuses effort and resources on a narrow, defined segment of a market.” (Generic Strategies, 1980). The niche strategy is usually used by smaller organizations...
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