5. A best-cost provider strategy —giving customers more value for the money by satisfying their expectations on key quality features, performance, and/or service attributes while beating their price expectations. This approach is a hybrid strategy that blends elements of low-cost provider and differentiation strategies; the aim is to have lower costs than rivals while simultaneously offering better differentiating attributes. Target is an example of a company that is known for its hip product design (a reputation it built by featuring cheap-chic designers such as Isaac Mizrahi), as well as a more appealing shopping ambience for discount store shoppers.

Its dual focus on low costs as well as differentiation shows how a best-cost provider strategy can offer customers great value for the money.