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a.

Identify the Basis for Customer Segmentation: :Consumer Market

Demographic Factors
Age
Income
Sex
Socioeconomic factors
Social class
Stage in the family life cycle
Geographic factors
Cultural
Region or Country Differences
Consumption Pattern
Heavy
Moderate
Light users
Perceptual Factors
Benefit Segmentation
Perceptual Mapping
Psychological FactorsPersonality Traits
Brand Loyalty Patterns

b. Identify the requirements of Cost Leadership


Building efficient scale facilities
Tight control of production cost and overhead
Minimizing cost of sales, research and development and services
State of the art manufacturing facilities
Monitoring costs activities provided by outsiders
Simplification of processes

c. List down the Major Risks of Cost-Leadership Business Level Strategy


Dramatic technological change could take away your cost advantage.
Competitors may learn how to imitate value chain.
Focus on efficiency could cause Cost Leader to overlook changes in customer
preferences.

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