1. Cost Leadership - offer the lowest price in the market.
2. Differentiation - Add value to improve quality to its product.
3. Using an Integrated Low-Cost/Differentiation Strategy.
Evaluation of Alternatives
• Compete for a wide customer based on price.
• Low costs will permit a firm to sell relatively standardized products that offer features acceptable to many customers at the lowest competitive price.
• Low price will gain competitive advantage and increase market share
• The competitors can develop a lower cost base than the existing cost leader in the market.
• Less customer loyalty.
• Low prices will result in creating a negative attitude towards the quality of the product.
• Customer’s impression of Rwanda teas will shift towards a product which might be higher in price but projects an image of quality.
• The company can charge a premium for its product.
• More earning above average returns.
• Customers develop brand loyalty
• Differentiation creates a better barrier to entry than cost leadership.
• Difficulty maintaining premium price.
• Agile competitors can quickly imitate.
Using an Integrated Low-Cost/Differentiation Strategy.
• More effectively leverage core competencies across business units and products lines which should enable the firm to produce produces with differentiated features at lower