Porter’s generic strategies include the following:
- Cost leadership strategy: Body shop serves a niche market and it is a status symbol. Thus, body shop uses the best and the most expensive products so that their finished good is expensive and unique. Plus they don’t deal in standardized products because they believe in innovation. Body shop does not need to incorporate this strategy because every market has different requirements for different manufacturers (Peteraf MA,1993).
- Differentiation strategy: This is Body shop’s basic strategy because they aim to be different in every way and they spend a lot on research and development. They always produce something that is unique and no competitor can copy it exactly. Thus body shop has many brand loyal customers and the price elasticity of demand for their products has reduced (Peteraf MA,1993).
- Segmentation strategy: Body shop has incorporated this strategy since it caters to a niche market and it aims to target a particular sector in the market that never compromises on quality, will always pay more for quality than quantity and give importance to corporate social responsibility since they care for the environment (Peteraf MA,1993).
These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.