Essentials of Strategic Management: The Quest for Competitive Advantage 4th Edition by John Gamble, Arthur Thompson, Margaret Peteraf

Exercise 5

Stihl is the world's leading manufacturer and marketer of chain saws with annual sales exceeding $2 billion. With innovations dating to its 1929 invention of the gasoline-powered chain saw, the company holds more than 1,000 patents related to chain saws and outdoor power tools. The company's chain saws, leaf blowers, and hedge trimmers sell at price points well above competing brands and are sold only by its network of some 8,000 independent dealers.
How would you characterize Stihl's competitive strategy? Should it be classified as a low-cost provider strategy? a differentiation strategy? a best-cost strategy? Also, has the company chosen to focus on a narrow piece of the market or does it appear to pursue a broad market approach? Explain your answer.