Sample Solution

h Nefit goals and objective

We believe that Bosch Nefit stands for certainty, as stated in their mission and vision on their website. They offer trustworthy, widely applicable and sustainable solutions for heating and energy supply. Their vision states that they want to differentiate themselves from competitors in their market. They do this by offering high-quality products, and a high-quality service. (Nefit, 2017)
Porter’s generic strategies
The theory we will use to define Bosch Nefit’s strategy will be the Porter’s generic strategies. This strategy describes the way a company tries to gain a competitive advantage in its market. There are four different strategies in this theory. The four are: Cost leadership, differentiation, cost focus and focus differentiation. In this theory Bosch Nefit is categorized in differentiation. The strategy involves one or multiple criteria used by the buyers in a market, and then the goal is to position the business uniquely meeting those criteria. The strategy also is usually associated with charging premium prices for the product, as you can see with Bosch Nefit’s products compared to competitors. But this higher price most of the times is to cover for the high production costs and extra added value for the customers, to of course differentiate. Differentiation is basically about charging higher prices to cover high production costs with the goal to give customers clear reasons to prefer those products over products from competitors. (Briefing Marketing analysis , 2018) (Tutor2u, n.d.)
There are different ways success in differentiation can be achieved. But it’s not easy and it needs investment. Let’s start with high product quality, as it needs to stand out. Branding is also important, people need to recognize your brand. And of course, promotional support, think of advertising and sponsorships, as of course people need to know about your company. Because maybe not everyone is aware of your products. (Tutor2u, n.d.)