Answer to Question #184797 in Management for Victor Campbell

Question

As a consultant advising the CEO of Freemen Computer, a new, local computer repair store that also builds custom computers to order, what competitive strategies could Freemen Computer exert? Which ones will it have difficulty exercising? Discuss

Answer 1

1. Product differentiation- by using superior components and adding more services to their products.
2. focus on market inche- determine a market niche that is geared to their advantage being a local store.
3. low- cost leadership- may be able to exercise low-cost leadership against other local computer stores.
4. customer and supplier intimacy- in that it can develop relationships with local customers on a face-to-face basis.  

They will have a problem exercising;

1. Low-cost leadership because it may have difficulty competing against the warranty services or computer sales of major national computer manufacturers, such as Dell.
2. Product differentiation- because national computer manufacturers sell customized computers to the individual.