For being the cheapest seller of a product or

            For a
multi-national company, the best types of competitive strategy to adopt would
be Cost leadership and/or Differentiation leadership strategy

 

For example, a company could make a commodity specifically
built for gamers like a specialized headset used for online gaming.

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Differentiation
focus: Like the cost focus strategy, this type of strategy
also zeroes in on a specific population area of the market, but instead of
being the cheapest seller of a product or service, it tries to market that
product to the specific area as a unique product or service, this way
differentiating itself from one or more competitors.

 

For example, a service provider, like MTN, could
choose to focus on a particular town or city and then strive to be the cheapest
in the town only. This kind of strategy enables firms to satisfy consumers and
gain popularity.

Cost
focus: This type of strategy is similar to the cost
leadership strategy except that it focuses on a niche (specific) market. The
company concentrates its efforts on a specific population area of the market
and keeps its products low priced in an attempt to establish itself as the
cheapest seller in that specific market area.

 

Again, this is another type of competitive strategy
that large companies and firms would most likely adopt due to the large
investment of resources in the research and development of new products.

Differentiation
leadership: With this type of competitive strategy, companies
offer a wide array of unique and different goods or services. Firms can target
to achieve market leadership because other competing firms will not be able to
surpass the company’s standards.

 

This type is typically only employed by big companies,
smaller companies cannot take part in this type of competitive strategy due to
the involvement of economies of scale.

Cost
leadership: This type of strategy involves the firm striving to
become the lowest cost producer of a certain commodity in the industry by
producing in large scale which allows the firm to achieve economies of scale.
Then, the firm sells the cheaply made products to consumers at the lowest
markup price possible thereby making it harder or virtually impossible for
other competitors to compete.

4.     Differentiation
focus

3.     Cost
focus

2.     Differentiation
leadership

1.     Cost
leadership

Types
of Competitive Strategy

Competitive strategy is
defined as the long term operation of a firm or company which will allow it to
achieve an advantage over it’s other competing firms and companies in it’s area
of production. This strategy involves the use of negatively showcasing a rival
company’s product in order to turn the consumers attention away from the
competition.