Michael Porter presented three generic strategies that firms can use to overcome the five forces and...

 

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Michael Porter presented three generic strategies that firms can use to overcome the five forces and attain competitive advantage. The first, overall cost leadership, is based on creating a low-cost position relative to one's peers. The second, differentiation, requires that the firm (or business unit) create products and/or services that are unique and valued. Third, firms following a focus strategy must direct their attention (or "focus") toward narrow product lines, buyer groups, or geographical markets. Firms emphasizing a focus strategy must attain advantages either through differentiation or a cost leadership approach. Firms can also use a combination strategy, the key benefit to be enjoyed by firms that successfully integrate low cost and differentiation strategies is that it is generally harder for competitors to duplicate or imitate them. An integrated strategy enables a firm to provide two types of value to customers: differentiated attributes and lower prices. Furthermore, the benefits of combining advantages can be additive, instead of merely involving tradeoffs. DIRECTIONS: Regarding the case company that you are analyzing: 1. What is the Business Strategy of your firm? 2. Is your firm successful in following one (or more) generic strategies? Why or why not? Michael Porter presented three generic strategies that firms can use to overcome the five forces and attain competitive advantage. The first, overall cost leadership, is based on creating a low-cost position relative to one's peers. The second, differentiation, requires that the firm (or business unit) create products and/or services that are unique and valued. Third, firms following a focus strategy must direct their attention (or "focus") toward narrow product lines, buyer groups, or geographical markets. Firms emphasizing a focus strategy must attain advantages either through differentiation or a cost leadership approach. Firms can also use a combination strategy, the key benefit to be enjoyed by firms that successfully integrate low cost and differentiation strategies is that it is generally harder for competitors to duplicate or imitate them. An integrated strategy enables a firm to provide two types of value to customers: differentiated attributes and lower prices. Furthermore, the benefits of combining advantages can be additive, instead of merely involving tradeoffs. DIRECTIONS: Regarding the case company that you are analyzing: 1. What is the Business Strategy of your firm? 2. Is your firm successful in following one (or more) generic strategies? Why or why not?

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1 Business Strategy of the Firm The business strategy of the firm is based on Porters Generic Strat... View the full answer