Answer to Question #198398 in Management for Nand Patel

Question

You have been appointed as a strategy consultant to an Italian Luxury Sport 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 along with the price points?

Answer 1

Differentiation is a generic approach that I would choose since it allows a firm to build products based on the tastes of its customers, giving them a comparative benefit over other firms manufacturing the same commodity. I would target the following types of customers:

a) Loyal customers- They constitute up a small percentage of the consumer base but account for a significant share of sales.

b) Impulse buyers- These customers do not have a specified product in mind and buy whatever appeals to them.

c) Discount clients- These are clients who shop frequently but mostly rely on markdowns to make purchases.

d) Need-based clients are those who are looking to purchase a specific item.

e) Wandering consumers-These are potential clients who are undecided about what they want to buy.