Low Cost Differentiation Preemptive Strength Brand Identity SWOT

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Low Cost

Differentiation

Preemptive

Strength

Brand identity

Differentiate from other low cost providers to increase volume

Brand identity commands a premium price, increasing margin

Brand identity becomes identifiable with a specific niche

Build brand identity quickly to reduce the threat of new entrants

Weakness

Lack of diversification

Diversify into many products to promote volume sales

Brand extensions

Diversification is not part of this strategy.

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Diversification is key to opening new market opportunities.

Opportunity

Geographic expansion

Increase volume

Increase volume

Increase volume

Increase opportunities

Threat

High substitutability

Inherent in the strategy -- low cost defends against this

Differentiation seeks to neutralize this threat

Product uniqueness defends against this threat

There should not be substitutability; if there is another innovation is needed.....

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