Explain the relationship between the three generic strategies and headquarter subsidiary relationship.

Explain the relationship between the three generic strategies and headquarter subsidiary relationship.

The three generic strategies i.e. cost leadership, differentiation and focus is greatly related to the relationship of headquarter and a subsidiary. Both of these entities can work together to develop market specific strategies by first employing the cost leadership strategy. This will help the organization get its goals of become the leader in the market in relation to the prices they would introduce for a product or service. The differentiation strategy can help headquarter and subsidiary define some characteristics that would make the product or service different and desirable among the target consumer market. The focus strategy can be used to identify a specific segment of the market and target it with different marketing strategies. Over here, the subsidiary may have to play an important role as they are present near to the target market.