The case study is describing the situation that is taking place in the automobile industry market in general and business strategy development of vehicle manufacture from the United States called Global Motors in particular. The author of the case study is covering different marketing issues and their solutions. The main issue described deals with acquiring competitive advantages in order to succeed on the market. One of the strategies that are described in the case study is differentiation strategy.

The differentiation strategy is part of Porter’s Generic Strategies Model that includes the analysis of company’s possible competitive advantages. It refers tosuch market elements as market scope and competitive advantages (Patidar, 2017). The differentiation strategy is creating the competitive advantage for the company through targeting wide range of customers from the geographic point of view with different product offerings (Misner, n. d.). In such a way, the broad range of buyers is targeted by the company using differentiation strategy.

As for the Global Motors Company, it uses broad differentiation strategy in order to capture maximum of the market share. Company’s management emphasizes on the wish of making Global Motors the industry leader. At the same time, they are realizing that it is impossible to succeed on the market only with one product offering, because it cannot satisfy the needs of all customers. Global Motors has decided to launch five absolutely different new products on the market. New vehicles of Global Motors have different engines, seat numbers, battery capacity, estimated MSRP and other important characteristics. Such diversified product range gives an opportunity for the Global Motors Company to target different target audience groups and as a result increase the market share of the company.

However, it is important to lay the stress on the fact that Porter’s Generic Differentiation Strategy has both advantages and disadvantage for the Global Motors Company. From one side, the differentiation strategy is beneficial to implement due to high geographic and product markets coverage. Many geographic regions, customers groups and product types can be included in terms of the differentiation strategy. As a result, company’s range of target audience, market share and, consequently, profitability are increased. In addition, the strategy is effective in winning market competition (Saint-Leger, n. d.). One more important advantage of the differentiation strategy is the fact that it contributes company’s stability. Due to the fact that Global Motors is performing on different vehicle markets, the effect of negative issues on one market can be eliminated with strong business position on another one. Consequently, companies using differentiation strategy have high prospects to become market leaders.

On the contrary, there are negative consequences of the differentiation strategy implementation. First of all, the strategy is hard to implement and control its effective running. Due to the fact that many markets and products are operated at the same time, the strategy requires well-developed plan, considerable staff proficiency and high level of control. At the same time, running the differentiation strategy is rather expensive because different products and different markets need to be financed at the same time. Consequently, much of financial resources have to be withdrawn in order to develop all markets at the same time.

Thus, taking everything into account the conclusion can be done that the chosen business strategy of Global Motors Company that is described in the case study is rather effective. The Porter’s Generic Differentiation Strategy will give an opportunity for Global Motors to target different markets and large target audience groups at the same time. As a result, the company will have high perspectives to become one of the leaders of automobile industry.