Stihl is the worldâ€s leading manufacturer and marketer of chain saws with annual sales exceeding $3.7 billion. With innovations dating to its 1929 invention of the gasoline-powered chain saw, the company holds more than 1,000 patents related to chain saws and outdoor power tools. The companyâ€s chain saws, leaf blowers, and hedge trimmers sell at price points well above competing brands and are sold only by its network of 40,000 independent dealers in more than 160 countries.
How would you characterize Stihlâ€s competitive strategy? Should it be classified as a low-cost provider strategy? a differentiation strategy? a best-cost strategy? Also, has the company chosen to focus on a narrow piece of the market or does it appear to pursue a broad market approach? Explain your answer.
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