Hybird Strategy combines cost leadership and differentiation strategies to provide unique products and services at affordable prices, enabling sustainable competitive advantage. It is suitable for both mass and niche markets. Studies of automobile plants and Indian firms found that those pursuing a hybrid strategy had lower costs, loyal workforces, and were able to survive in competitive environments long-term. Organizations combining cost leadership and differentiation strategies were shown to be more profitable than those focusing on just one generic strategy.

1. Hybird Strategy for sustainable growth
Hybird Strategy = cost leadership + differentiation
In today’s market you might be observing price war amongst competitors due to hyper
competition and price sensitivity. There are many companies got locked due to either not play
well in price war or not able to meet consumer expectation. Generic strategy play healthy role,
but in generic strategy is not suitable in those areas where people want unique products, services
and ideas at affordable range. That’s why another introduce new concept of strategy for
sustainable competitive advantage that is ‘Hybird Strategy’
Hybird Strategy is the combination of two generic strategy- cost leadership and differentiation. It
is also suitable to niche market. According to Womack, Jones and Roos of MIT, USA, this
strategy can develop competitive advantages into the marketplace. They studied under 70
Automobile plants throughout the world were engaged in manufacturing of mid-size car.
Through this research they found that six plants out of 70 had very low cost and differentiating
(very high quality). Due to that they were able to reduce their cost, make loyal workforce, and
most important able to survive in competitive world long run.
There was one another study in Indian context, which is based on hybrid strategy.
Gopalakrishnan and Subramaniam studied on the concept of the combination of cost leadership
and differentiation. They were included 158 firms of different sectors in Tamil Nadu. They
found four clusters of firms: Cost leaders, differentiators, comprehensive (high on both cost
leadership and differentiation) and undeveloped (low on both cost leadership and differentiation).
They had concluded their research in such manner that Performance of comprehensive group
was high amongst others in terms of revenue, returns on capital, retain more customers and
success in new products and services and the performance of undeveloped was worse amongst
all.
Conclusion -: Organizations who have been combining the cost leadership and differentiation
strategy are more profitable amongst others. For example IKEA (differentiate in design + low
cost), Toyota (quality – although under pressure + price).
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