As discussed in Chapter 1, positional advantage results from cost leadership or differentiation that .gives customers super or value.12 Lower costs enable <» firm to offer superior value by pricing an equivalent project at a lower price than its coir Testators.

Differentiated product features that match -Myers' preferences offer unique l -unfit that, more: hand offset a higher price. An important factor in seeking advantage is deciding where and how to compete.

For example , the decision of Home depot's management' to target do-it-yourself home-improvement needs (rather than professional^) enabled the firm to concentrate its efforts on this market segment, offering buyers low prices and experienced salespeople who assist customers in selecting hardware, plumbing, and electrical items.

The company has large warehouse stores, located in areas convenient to homeowners.