For many decades, Porsche pursued a focused differentiation strategy. Using a clear strategic profile as a focused differentiator, Porsche was very successful and very profitable. More recently, the Porsche brand has been repositioning itself from focused differentiation to broad differentiation by changing its competitive scope. What are the risks inherent in such strategic positioning? What are the benefits? Do you think Porsche will be successful in carving out a new strategic position as a broad differentiator? Why or why not?

Need a paper written? Our academic experts can create an original essay on any subject for ~~$13.00~~ $11/page Learn More

Focused differentiation is a marketing approach that focuses on a specific market by providing a one-of-a-kind service or product feature that fulfills the needs of a particular client group. To meet its customers’ needs, the company examines its target consumers’ interests and preferences and its strengths and shortcomings. The company concentrates its resources on the market and meets its inherent needs. Repositioning to broad differentiation will have a varied impact.

First of all, broad differentiation is a comprehensive market strategy that entails developing a specific product or service in its sector. After that, the corporation or business unit may demand a higher price. Design, brand image, technology, features, dealers, network, and customer service are all examples of this specialization. The risks associated with differentiation can be seen in the pricing imbalance between low-cost producers and the differentiating company. Will persuade product consumers to make a purchase decision that may not favor one company.

Another risk is that low-cost competitors may take over the market if the differentiated business falls behind too much. The benefit of this strategy is that companies that utilize a differentiation strategy establish a distinct image value for a product and service by using product management, brand image, and customer support. Marketing channel control. I think Porsche will be successful in carving out a new strategic position as a broad differentiator.

I can state this because East et al. studied the impact of overall low-cost and differentiation tactics on the market orientation–performance connection. According to the findings, those that pursue a differentiation strategy are more market-oriented than companies that follow a low-cost approach. Furthermore, differentiated enterprises performed better than low-cost firms regarding market orientation.

Rate the answer:

Answer by Academic.tip's expert

An answer to this question is provided by one of our experts who specializes in marketing. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2023) 'For many decades, Porsche pursued a focused differentiation strategy. Using a clear strategic profile as a focused differentiator, Porsche was very successful and very profitable. More recently, the Porsche brand has been repositioning itself from focused differentiation to broad differentiation by changing its competitive scope. What are the risks inherent in such strategic positioning? What are the benefits? Do you think Porsche will be successful in carving out a new strategic position as a broad differentiator? Why or why not'. 20 January.

Reference

Academic.Tips. (2023, January 20). For many decades, Porsche pursued a focused differentiation strategy. Using a clear strategic profile as a focused differentiator, Porsche was very successful and very profitable. More recently, the Porsche brand has been repositioning itself from focused differentiation to broad differentiation by changing its competitive scope. What are the risks inherent in such strategic positioning? What are the benefits? Do you think Porsche will be successful in carving out a new strategic position as a broad differentiator? Why or why not? https://academic.tips/question/for-many-decades-porsche-pursued-a-focused-differentiation-strategy-using-a-clear-strategic-profile-as-a-focused-differentiator-porsche-was-very-successful-and-very-profitable-more-recently-the-p/

References

Academic.Tips. 2023. "For many decades, Porsche pursued a focused differentiation strategy. Using a clear strategic profile as a focused differentiator, Porsche was very successful and very profitable. More recently, the Porsche brand has been repositioning itself from focused differentiation to broad differentiation by changing its competitive scope. What are the risks inherent in such strategic positioning? What are the benefits? Do you think Porsche will be successful in carving out a new strategic position as a broad differentiator? Why or why not?" January 20, 2023. https://academic.tips/question/for-many-decades-porsche-pursued-a-focused-differentiation-strategy-using-a-clear-strategic-profile-as-a-focused-differentiator-porsche-was-very-successful-and-very-profitable-more-recently-the-p/.

1. Academic.Tips. "For many decades, Porsche pursued a focused differentiation strategy. Using a clear strategic profile as a focused differentiator, Porsche was very successful and very profitable. More recently, the Porsche brand has been repositioning itself from focused differentiation to broad differentiation by changing its competitive scope. What are the risks inherent in such strategic positioning? What are the benefits? Do you think Porsche will be successful in carving out a new strategic position as a broad differentiator? Why or why not?" January 20, 2023. https://academic.tips/question/for-many-decades-porsche-pursued-a-focused-differentiation-strategy-using-a-clear-strategic-profile-as-a-focused-differentiator-porsche-was-very-successful-and-very-profitable-more-recently-the-p/.

Bibliography

Academic.Tips. "For many decades, Porsche pursued a focused differentiation strategy. Using a clear strategic profile as a focused differentiator, Porsche was very successful and very profitable. More recently, the Porsche brand has been repositioning itself from focused differentiation to broad differentiation by changing its competitive scope. What are the risks inherent in such strategic positioning? What are the benefits? Do you think Porsche will be successful in carving out a new strategic position as a broad differentiator? Why or why not?" January 20, 2023. https://academic.tips/question/for-many-decades-porsche-pursued-a-focused-differentiation-strategy-using-a-clear-strategic-profile-as-a-focused-differentiator-porsche-was-very-successful-and-very-profitable-more-recently-the-p/.

Work Cited

"For many decades, Porsche pursued a focused differentiation strategy. Using a clear strategic profile as a focused differentiator, Porsche was very successful and very profitable. More recently, the Porsche brand has been repositioning itself from focused differentiation to broad differentiation by changing its competitive scope. What are the risks inherent in such strategic positioning? What are the benefits? Do you think Porsche will be successful in carving out a new strategic position as a broad differentiator? Why or why not?" Academic.Tips, 20 Jan. 2023, academic.tips/question/for-many-decades-porsche-pursued-a-focused-differentiation-strategy-using-a-clear-strategic-profile-as-a-focused-differentiator-porsche-was-very-successful-and-very-profitable-more-recently-the-p/.

Copy