Answer the questions below based on a strategic group map of the beauty industry: Strategic group...
- Answer the questions below based on a strategic group map of the beauty industry: Strategic group map of the beauty industry.pdf . Note that strategic group maps are, to some extent, open to interpretation, and it is possible to draw different strategic group maps for the same industry by using different variables.
1. What generic strategies do each of the group pursue. Please refer to my question regarding the beauty industry strategic group questions recently posted.
Subject: business policy
Homework Answers
The answer:
A strategic group map is used to identify different companies competing in the same industry.
The generic business strategies are cost leadership, differentiation, and focus. The companies that focus more on reducing the cost of products fall in cost leadership, while the companies that focus on providing unique products fall in the differentiation category. The companies that focus on a specific niche market fall in focus category.
In the beauty industry, Olay, Loreal, Maybelline, Johnson, and Johnson fall in the cost leadership category. These companies have a wide variety of products that are available at lower prices.
The companies SK II, Lancome, and Estee Lauder fall in the differentiation category. These companies provide few products at higher prices.
Company R+D falls in the focus category. This company sells a few products at high prices. The company targets a niche market with few customers.
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