1.
Please convey your understanding of the following quote "Understanding the differences that
underlie generic strategies is important because different generic strategies offer different value
propositions to customers. A firm focusing on cost leadership will have a different value chain
configuration than a firm whose strategy focuses on differentiation."
2. Explain the advantages and disadvantages of a Focused Strategy.
Solution
"Understanding the differences that underlie generic strategies is important because different
generic strategies offer different value propositions to customers. A firm focusing on cost
leadership will have a different value chain configuration than a firm whose strategy focuses on
differentiation."-
the meaning of these sentences is that there should be the proper understanding of the importance
of the differences of that which has been underlied in the various generic strategies due to the
various offer of different value proposition of the generic strategies to te customers provided.
when a firm has the cost leadership as the primary goal the value of the diffrences of the various
generis strategies will be dfferent from that of the value chain configuration based on the value
based strategy differentiation.
advantages of the focussed strategy are loyalty building among employees, more number of
referral, customer service brand based products.
disadvantages are less innovation and new methods of improvement are limited, career
development is not as expected.