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Strategy - Miscellaneous Articles on Strategy

 
Differentiation, Niche and Cost Leadership Strategies: A Hotelling Based Analysis Costs are an important determinant of prices charged by firms. The primary purpose of this paper is to study the impact of costs associated with differentiation and niche strategies on firm’s positioning and pricing decisions in a horizontally differentiated market. We analyze both sequential and simultaneous entry cases. In the sequential case, the cost of differentiation is an additional cost incurred by the second entrant and it depends on the degree of differentiation between itself and the first mover. The cost of following a niche strategy is a market level cost affecting both firms whereby firms incur a positive or negative cost if they want to make a niche product. pdf

   

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Status: 04. April 2012