Differentiation Strategies
This strategy focuses on being the lowest-cost producer in an industry.
Cost leadership
This part of SWOT refers to internal positive factors.
Strengths
This force analyzes how easy it is for customers to switch to another products
Buyer powers / bargaining power of buyers
Keeping existing customers loyal to the brand.
Customer Retention
The degree to which people prefer individual goals over group goals.
Individualism vs Collectivism
A company that offers a unique product to a narrow market uses this strategy.
Differentiation focus
A new competitor entering the market represents this element of SWOT.
Threat
This force focuses on how easily new competitors can enter the industry.
Threat of new entrants
Setting a high initial price for a new product before lowering it later.
Price skimming
This dimension compares how societies handle inequality and hierarchy.
Power Distance
This strategy targets a niche market but with low prices.
Cost focus
An improvement in technology could represent this part of SWOT for a company that adopts it
Opportunity
This force refers to companies producing similar products that compete for the same customers.
Competitive Rivalry
When a new product eats away sales of an existing product from the same company.
Cannibalization
Refers to the cultural dimension that explores how societies prioritize gratification and enjoyment versus self-discipline and control.
Indulgence vs restraint
Apple and Nike use this type of strategy to create strong brand loyalty through uniqueness.
Differentiation
A poor brand image or lack of innovation could be classified here.
Weakness
Cultural attitudes, lifestyle changes, and demographics belong here.
Social
The value of a brand beyond its physical assets.
Brand Equity
This dimension measures how societies deal with ambiguity and risk.
Uncertainty Avoidance
This type of strategy can involve high advertising and R&D costs to maintain uniqueness.
Differentiation Strategy
True or False: Opportunities and threats are internal factors.
False
This factor includes elections, government policies, and trade restrictions.
Political
The extent to which a company can use borrowed funds to finance its operations.
Leverage
This dimension shows whether a culture focuses on short-term or long-term results
Long-Term Orientation