【正文】 only external force that shapes one39。s car, yet most of the fuels available at the pump are virtually the same. Each of these businesses has its own market position and strives to keep its market share through marketing efforts. Part of the strategic marketing effort is to decide how best to differentiate oneself from the petition. Another external factor that impacts how one can best position oneself in the market is the stage of the market or the industry life cycle. Some anizations excel, for example, at being the first on the market with an innovation or new product. Others excel at taking the innovation and adapting it to the needs of the marketplace (., lower price, different features). In addition, there are various strategic windows that affect an anization39。s minds as using an abacus. Once the strategic window begins to close, it is typically best that the anization look for another opportunity. Development of Competitive Strategy To help meet their goals and objectives, many businesses develop a petitive strategy that will increase their petitive advantage. There are three generic approaches for petitive strategies: (1) the provision of low cost products or services, (2) differentiation of products from those of the petition, and (3) focus on the market niche. Low Cost Strategy The goal of the low cost strategy is to gain a larger market share. This is done by offering acceptable quality products or services at prices lower than those of the petition. The expectation in this strategy is that the anization will earn an acceptable return on investment by increasing volume of sales. The basic methods used in lowcost leadership strategies include reduction of overhead, buying or production costs and focused marketing strategies. For example, a restaurant may reduce the price of wine with the intention of making up the shortfall in profits by selling more than they did at the higher price. Similarly, a big box store may use a bination of effective management and information technology practices to reduce operation costs in order to deliver the lowest possible prices on its merchandise. Product Differentiation A second generic approach to petitive strategy is product differentiation. In this approach, the business attempts to differentiate itself from its petitors by producing a product or offering a service whose quality is perceived by customers to have unique features or characteristics that set it apart from similar offerings. This strategy attempts to build customer loyalty by offering something of value that is offered by no one else in the marketplace. In this strategy, the necessity of keeping the price of the product or service down bees less important because customers are frequently willing to pay more to get their favorite brand. However, value can be a subjective quality and brand loyalty is not necessarily sufficient to make this strategy successful. There is a point beyond which most customers are no longer willing to pay a premium price. However, if carefully managed, a differentiation strategy can be highly successful. For example, Merrill Lynch was able to differentiate itself from its petitors by offering integrated financial services to attract the most desirable investors. This strategy yielded not only a well recognized and highly valued brand that differentiated Merrill Lynch from its petitors, but also resulted in substantial customer loyalty and a petitive advantage in the marketplace. Niche Mark