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The company may use 3 types of competitive strategies in the market and PROTON Company is using cost leadership and differentiation.
Differentiation is associated with charging a premium price for the product. It’s often to reflect the higher production costs and extra value-added features for the consumer. Then, the company will be always aim to develop and market unique product for different market.
PROTON has emphasized on its commitment towards quality by incorporating the core value and quality policy. PROTON has ensured quality as the Number One work ethics in all operations .For example, they has established an effective and efficient quality System based on the requirements of ISO 9001:2008 standards(proton annual report 2011-unlocking our potential, Jan 2012). It will able to help PROTON differentiae from others and achieve its commitment.
PROTON makes product that work the first time, every time. From this, we can see that proton has providing a consistently improved product and customer experience. For example, additional value added features like focusing on fuel efficiency, safety and emphasizing on the environment friendly vehicle has enhance the performance and sales of Proton Exora.So Consumers PROTON will tend to accept the extra value-added features by PROTON and may choose to attach themselves with PROTON by joining the membership clubs to gain more information
Cost leadership Strategy means selling the goods at the cheapest price in the market. The use of this strategy is to gain an advantage over competitors by reducing operation costs below that of others in the same industry. With this strategy, the objective is to become the lowest-cost producer in the industry.
Price remains a function of value, although not to the same extent as for an undifferentiated market and it is an important strategic issue for PROTON because it is very much related to total volume of sales. They have providing cars which are affordable, cost efficient and value for money. The cost leadership strategies have strong impact to draw customer attention .Generally consumers feel that the prices of PROTON’s products are affordable as compared with other brands in the category then they will select products and suppliers that provide value which equals or exceeds the actual and perceived cost both at the time of purchase and over the product’s life. For example the retail price for Exora is remaining same price as previous version.
The relatively low car selling price of PROTON is attributed by the government policy, as the national car manufacturer, PROTON enjoys a certain amount of protection against foreign competition in the form of tariff and other non-tariff barriers. These policies have massive impact on consumers, especially those who are value-conscious and seeking for a quality and compact cars at an affordable price.