What would be some examples of cost competitive strategies?


Cost leadership strategies:

·      In the car industry: Honda Civic, Toyota Corolla, and the Nissan Sentra are mass-produced and they compete on price.

·      In the softwood lumber industry: decking products are mass-produced and compete on price

·      Bottled water is another example of mass-produced products that compete on price


·      Rolls Royce, Lamborghini, and Maserati are car’s brands that offer unique features. They have the lowest demand but the highest price.

·      A dinner plate in Summit’s restaurant in Christiansburg, VA.

·      A first class seat in a flight from New York La Guardia to London Heathrow.

Niche specialization:

·      A hybrid car such as Honda Fit, Toyota Prius, or Nissan Leaf. These products focus on a niche market for environmental products.

·      Starbucks brews coffee and provides a coffee drinking environment that focus on attracting specialized customers.

·      Ike manufactures composite furniture using contemporary designs that focus on young people (high school or college students)