Question

What apparent generic strategy is baldwin and erie executing?

a. both are on a niche strategy life cycle low-cost and niche differentiation respectively.
b. both are executing low-cost strategy.
c. life cycle differentiation and niche low cost respectively.

Answer 1

Baldwin is executing a Life Cycle Differentiation strategy by offering unique products across the industry for the entire product lifecycle. Erie is following a Niche Low-Cost strategy by focusing on a specific market segment while maintaining cost competitiveness.

Step-by-step explanation:

In assessing the strategies executed by Baldwin and Erie, it is pivotal to understand Michael Porter's generic strategies, which include Cost Leadership, Differentiation, and Focus (which can be divided into Cost Focus and Differentiation Focus). The strategy executed by a company can typically be categorized as one or more of these strategies and may vary in specificity such as targeting a broad market or a niche.

Baldwin appears to be following a Life Cycle Differentiation strategy. This involves offering products that are unique across the industry and throughout the entire product life cycle. Erie, on the other hand, seems to be executing a Niche Low-Cost strategy, which focuses on a specific segment of the market while maintaining cost competitiveness. It is clear then that option 'c' seems to represent their strategies accurately - Life Cycle Differentiation for Baldwin and Niche Low Cost for Erie, respectively.