Answer to Question #192178 in Management for Mitali

Question

You have been appointed as a Strategy Consultant to an Italian Luxury Sports Car manufacturing brand namely “Pagani Huayra” wanting to enter India. Which one of Porter’s Generic Strategies would you choose to be operational in India & explain the reasons in detail behind your choice of strategy? Once the strategy has been chosen explain the categories of customers you would target alongwith the price points?

Answer 1

Answer

I would pick is differentiation as a generic strategy because with differentiation the company will design products according to the preferences of their clients, which will give them a competitive advantage over other companies producing the same product.

The category of clients I would target are the:

a)     Loyal customers- They make up a minority of the customer base but make a large portion of sales.

b)     Impulse customers- This type of customers do not have a specific product in mind and purchase goods when it seems good.

c)     Discount customers- are those customers that shop regularly but base buying decisions mainly on markdowns.

d)     Need-based customers- Customers with the intention of buying a specific product.

e)     Wandering customers- These would-be customers that are not sure of what they want to buy.