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Discuss how Blartem Clothing could use one of Porter’s Generic Strategies as it enters the competitive market for activewear. - VCE - SSCE Business Management - Question 6 - 2022 - Paper 1

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Discuss how Blartem Clothing could use one of Porter’s Generic Strategies as it enters the competitive market for activewear.

Worked Solution & Example Answer:Discuss how Blartem Clothing could use one of Porter’s Generic Strategies as it enters the competitive market for activewear. - VCE - SSCE Business Management - Question 6 - 2022 - Paper 1

Step 1

Differentiation Strategy

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Answer

Blartem Clothing could seek to use differentiation, which is where they seek to be unique in the activewear industry by offering specific features that stand out from competitors. For instance, they could implement moisture-wicking fabric or include practical features like extra pockets to enhance the functionality of their products.

This approach focuses on creating high-quality products that are superior to what is already available in the market. The strength of using a differentiation strategy lies in its ability to attract customers who are looking for unique, high-performing activewear that can provide a competitive edge in terms of comfort and usability.

However, while differentiation can lead to strong customer loyalty, it also comes with its own challenges. The costs associated with using superior materials and enhancing product features can be higher, which may impact profit margins. Therefore, Blartem Clothing should carefully analyze their production costs and the price they set in the market to ensure that the differentiation delivers sufficient value to customers, thereby justifying any premium pricing.

In conclusion, by focusing on differentiation, Blartem Clothing not only aims to gain a competitive advantage but also works to build strong brand loyalty amongst its target audience.

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