A) Focused Differentiation Strategy 1)Define it. 2)Cite it. 3)Describe its impor

Question

A) Focused Differentiation Strategy

1)Define it.

2)Cite it.

3)Describe its importance.

B) read the following then answer the questions :

1. How does this relate to strategic management?

2. What are some other examples of companies using this strategy?

3. Evaluate the effectiveness of this strategy.

CVS Buys Aetna for $69 Billion

LESTER HOLT, anchor:

Now to a blockbuster deal that could affect how millions of people pay for prescription drug. CVS, the pharmacy chain, agreeing to buy Aetna, the health insurance giant in a deal worth $69 billion. NBC News business correspondent Jo Ling Kent takes a look at what it could mean for you and your family at the pharmacy counter.

JO LING KENT, reporting:

It's a landmark merger that could change the way millions of Americans get health care and prescription drugs. CVS agreeing to buy Aetna for $69 billion--means for the first time ever, one company will own and control an insurance provider, a retail pharmacy chain, and a pharmacy benefit manager which negotiates the price and discounts for your prescription drugs.

LARRY MERLO: It's really the perfect time to bring these two companies together, to create a new health care platform that can be easier to use and less expensive for consumers.

KENT: The combined company will operate nearly 10,000 CVS pharmacies and clinics like this one. CVS plans to turn them into one-stop shopping for patients. You'll find more primary care services from Aetna's care network, wellness centers, and your pharmacy all in one place. CVS will continue to serve customers with other insurance too. It sounds convenient. But will it save you money?

LAURENCE BAKER: Maybe they get some more negotiating leverage and they can try to drive some health care costs down.

KENT: Experts also say this mega merger will mean less competition overall which limits choice for consumers. The deal comes as Amazon prepares to enter the prescription drug market. The e-commerce giant has already received approval for wholesale pharmacy licenses in 15 states, potentially disrupting how you get your drugs and driving prices lower. A major shift in how your health care is delivered that could affect the price you pay. Jo Ling Kent, NBC News, Los Angeles.

Explanation / Answer

A) 1. Focussed differentiation strategy is the approach based on uniqueness or niche market and target a narrow market between competing firms.

2. For example Cinnamon Rolls are cheaper for you in some place but Cinnabon,s pastrieis are so delicious that you have to be in que to purchase it and hence Cinnabon strategy is to own a focus brand by parent company name 'focus brand".

3. Importance of focused differention strategy is to charge high prices in creating through niche market.They keep hefty premium for its outdoor sporting goods and clothes showing brand name such as The North face.

B) 1.Strategic management theory of merger and acquisition defines that when two companies joining together by acquisition or merger generally to achieve rapid growth then this kind of strategy are taught under strategic management

2.Amazon has already acquired merger with twitch,zappos and with exchange.com. Jo Ling kent,NBC News and Los Angles companies have taken merger with other field to earn profit with less price.

3.Merger between the companies mean less competition overall and less competition can fix prices easily to earn more profit with better choice for customer.It is more comfort to do business with larger network and monopoly of the brand in the market.

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