Price and quality are the most common strategic elements. The strategy may be to produce a superior quality product or service and charge an appropriate price, or to produce a lower-cost item and charge a lower price.
Scope of product line
A broad product or service line allows customers to do one-stop shopping, saving them time and effort. It may also allow economies of scale that can benefit customers. A narrower product line may allow more depth of product, perhaps including more alternatives for the same product type. It may be coupled with more in-depth expertise.
State-of-the-art products
Offering the most technically advanced products can form a powerful strategy if the firm truly has the capability to offer state-of-the-art products. Usually technically ad-vanced products will cost more than less advanced ones.
Trendy products
Fashionable products can earn premium prices, but they cost more to design and are riskier, necessitating higher prices.
Brand-name products
Products with established brand names command higher prices, but generic products are proving increasingly popular. Creating a memorable national brand requires an expensive, market saturating advertising campaign.
Customized products
One of the least risky strategies for smaller firms is to offer a high degree of customization, allowing them to differentiate their offerings from the typically more standard offerings of larger firms.
Niche market
Offering unique products or services serving obscure niche markets is another less risky strategy for smaller firms. Typically, the smaller volume requires higher operating costs, but the lessened competition more than makes up for it.
Service
Coupling product offerings with a high degree of service can often be used to differentiate a business from a competitor offering minimal or no service.
