- Cost Leadership Across Industry
- Cost Leadership Within Industry Segment
- Product Differentiation Across Industry
- Product Differentiation Within Industry Segment
It is possible to be a cost leader; one example is Tesla, who manufactured their own battery and were able to cut costs by 30%. Despite this, it is not possible for every firm to be a cost leader due to the fact that this is an emerging technology and investment is expensive. Thus, companies investing in self-driving cars should aim for product differentiation. Self-driving cars are not only environmentally friendly, but also save immense amounts of time and effort, and have the potential to change the future of commuting. A company that sells electric cars should aim to become the most environmentally friendly, the most secure, or the most innovative by offering certain features not found anywhere else. Currently, it is possible to differentiate the product across the entire industry as the scope of the industry is small. However, as the industry grows, it may prove to be more beneficial to differentiate the product within a segment of the industry— for example, by targeting a niche market. Research and development is key to maintaining competitive advantage; with this new technology, it is essential to innovate before everyone else does. A company that has successfully pulled off the strategy of product differentiation is Apple; they invested 10 billion [source: http://www.strategyand.pwc.com/reports/connected-car-2016-study] in innovating their own iCar.
Autonomous Vehicles 