The Five Generic Competitive Strategies : Which One to Employ?Ami Sampath
A summary presentation of Chapter 5 of the book "Crafting and Executing Strategy, (SIE): The Quest for Competitive Advantage: Concepts and Cases, 14/e"
http://highered.mcgraw-hill.com/sites/0070600899/information_center_view0/
The Five Generic Competitive Strategies : Which One to Employ?Ami Sampath
A summary presentation of Chapter 5 of the book "Crafting and Executing Strategy, (SIE): The Quest for Competitive Advantage: Concepts and Cases, 14/e"
http://highered.mcgraw-hill.com/sites/0070600899/information_center_view0/
Strategy formulation at the corporate level will defines the Growth, Stability and Retrenchment. This phase includes the Directional Strategies, Corporate Portfolio Analysis and Corporate Parenting
What is a Strategy? Michael Porter - Harvard Business ReviewDonny Sitompul
What is Strategy
Operational Effectiveness Is Not Strategy
Strategy Rests on Unique Activities
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
How competitive forces shape strategy?Ashish Verma
Forces governing competition in an industry:
The nature and degree of competition in an industry hinge on five forces:-
The threat of entry
The bargaining power of customers
The bargaining power of suppliers
The threat of substitute products
The jockeying among current competition
Porter's Generic Strategies with examplesdipalij07
This Presentation is containing brief description of generic strategies with examples of companies in detail....
Hope it will be helpful to everybody....
Enjoy...!! :)
Strategy formulation at the corporate level will defines the Growth, Stability and Retrenchment. This phase includes the Directional Strategies, Corporate Portfolio Analysis and Corporate Parenting
What is a Strategy? Michael Porter - Harvard Business ReviewDonny Sitompul
What is Strategy
Operational Effectiveness Is Not Strategy
Strategy Rests on Unique Activities
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
How competitive forces shape strategy?Ashish Verma
Forces governing competition in an industry:
The nature and degree of competition in an industry hinge on five forces:-
The threat of entry
The bargaining power of customers
The bargaining power of suppliers
The threat of substitute products
The jockeying among current competition
Porter's Generic Strategies with examplesdipalij07
This Presentation is containing brief description of generic strategies with examples of companies in detail....
Hope it will be helpful to everybody....
Enjoy...!! :)
Cost Leadership / Low-cost Business Strategy:
A cost leadership strategy is an integrated set of actions designed to produce or deliver goods or services at the lowest cost, relative to that of competitors, with features that are acceptable to customers.
Marketing is the way companies interact with consumers to create relationships that are beneficial to both parties. Businesses use marketing to identify their audience before advertising to them. Today, this is most visible through social media interactions.
Focus or segmentation strategy is the third of the classical innovation strategies, along with cost leadership and differentiation. The focus innovation strategy has the advantage of a well-known target market but can be at risk for the narrow scope of market.
Read the full post at www.globalnpsolutions.com
Collaboration is not an option. Everything is available to everyone. Your business needs strategies for competitive advantage. This presentation helps you to start thinking in the direction.
The Strategy accelerator - Business models with sustainable competitive advan...Alfred Griffioen
Innovate your business model to gain higher ROI. Determine your sustainable competitive advantage (market relevancy or a unique product) and choose your strategy: ally, combine, excel or consolidate. This presentation in English is based on the Dutch book 'De strategieversnelling'. See www.strategy-accelerator.com
“Porter’s five forces model is an analysis tool that uses five forces to determine the profitability of an industry and shape a firm’s competitive strategy”[1]
“It is a framework that classifies and analyzes the most important forces affecting the intensity of competition in an industry and its profitability level.”
A firm pursuing a cost-leadership strategy attempts to gain a competitive advantage primarily by reducing its economic costs below its competitors.
If cost-leadership strategies can be implemented by numerous firms in an industry, or if no firms face a cost disadvantage in imitating a cost-leadership strategy, then being a cost leader does not generate a sustained competitive advantage for a firm. The ability of a valuable cost-leadership competitive strategy to generate a sustained competitive advantage depends on that strategy being rare and costly to imitate.
Michael porter's five force model ( porter's competitive enviroment analysis)Suleyman Ally
porters five forces, advantages and its limitation. features of attractive and unattractive competitive enviroment, cirmustances that couses higher supplier and customer bargaining power,
Ever wonder when a customer actually thinks about your product or service? This workshop can help you to determine how to market your services at moments when they do.
Business level strategies—Porter’s framework of competitive strategies, Conditions, risks and benefits of Cost leadership, Differentiation and Focus strategies,
Strategic Analysis and choice—Corporate level analysis (BCG, GE Ninecell, Hofer’s product market evolution and Shell Directional policy Matrix)
Industry level analysis; Porter’s five forces model, Qualitative factors in strategic choice.
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
3. The Five-Forces Model of Competition
(Porter)
Potential development
of substitute products
Bargaining power Rivalry among Bargaining power
of suppliers competing firms of consumers
Potential entry of new
competitors
5. Cost Leadership Strategy
• Firms that succeed in cost leadership often have the following
internal strengths:
– Access to the capital required to make a significant investment in
production assets; this investment represents a barrier to entry that
many firms may not overcome.
– Skill in designing products for efficient manufacturing, for example,
having a small component count to shorten the assembly process.
– High level of expertise in manufacturing process engineering.
– Efficient distribution channels.
• Risks
– For example, other firms may be able to lower their costs as well. As
technology improves, the competition may be able to leapfrog the
production capabilities, thus eliminating the competitive advantage.
Additionally, several firms following a focus strategy and targeting
various narrow markets may be able to achieve an even lower cost
within their segments and as a group gain significant market share.
6. Differentiation Strategy
• Firms that succeed in a differentiation strategy
often have the following internal strengths:
– Access to leading scientific research.
– Highly skilled and creative product development team.
– Strong sales team with the ability to successfully
communicate the perceived strengths of the product.
– Corporate reputation for quality and innovation.
• Risks
– include imitation by competitors and changes in
customer tastes. Additionally, various firms pursuing
focus strategies may be able to achieve even greater
differentiation in their market segments.
7. Focus Strategy
• Concentrates on a narrow segment and within that segment attempts to
achieve either a cost advantage or differentiation.
– The premise is that the needs of the group can be better serviced by focusing
entirely on it.
– A firm using a focus strategy often enjoys a high degree of customer loyalty, and
this entrenched loyalty discourages other firms from competing directly.
• Because of their narrow market focus, firms pursuing a focus strategy have
lower volumes and therefore less bargaining power with their suppliers.
However, firms pursuing a differentiation-focused strategy may be able to
pass higher costs on to customers since close substitute products do not
exist.
• Firms that succeed in a focus strategy are able to tailor a broad range of
product development strengths to a relatively narrow market segment that
they know very well.
• Risks
– include imitation and changes in the target segments. Furthermore, it may be
fairly easy for a broad-market cost leader to adapt its product in order to compete
directly. Finally, other focusers may be able to carve out sub-segments that they
can serve even better.
8. Stuck in the Middle?
• These generic strategies are not necessarily compatible with one another. If a firm
attempts to achieve an advantage on all fronts, in this attempt it may achieve no
advantage at all.
– For example, if a firm differentiates itself by supplying very high quality products, it risks
undermining that quality if it seeks to become a cost leader. Even if the quality did not suffer,
the firm would risk projecting a confusing image.
• For this reason, Michael Porter argued that to be successful over the long-term, a firm
must select only one of these three generic strategies. Otherwise, with more than one
single generic strategy the firm will be "stuck in the middle" and will not achieve a
competitive advantage.
• Porter argued that firms that are able to succeed at multiple strategies often do so by
creating separate business units for each strategy. By separating the strategies into
different units having different policies and even different cultures, a corporation is
less likely to become "stuck in the middle."
• However, there exists a viewpoint that a single generic strategy is not always best
because within the same product customers often seek multi-dimensional
satisfactions such as a combination of quality, style, convenience, and price.
– There have been cases in which high quality producers faithfully followed a single strategy
and then suffered greatly when another firm entered the market with a lower-quality product
that better met the overall needs of the customers.
9. Generic Strategies/Industry Forces
These generic strategies each have attributes that can serve to defend against competitive forces.
Generic Strategies
Cost
Industry
Force
Differentiation Focus
Leadership
Ability to cut price in Customer loyalty can Focusing develops core
Entry retaliation deters discourage potential competencies that can
Barriers potential entrants. entrants. act as an entry barrier.
Large buyers have less
Buyer Large buyers have less
Ability to offer lower power to negotiate
power to negotiate --
price to powerful buyers. because of few
Power few close alternatives.
alternatives.
Suppliers have power
because of low
Better able to pass on volumes, but a
Supplier Better insulated from
supplier price increases differentiation-focused
Power powerful suppliers.
to customers. firm is better able to
pass on supplier price
increases.
Customers become
Specialized products &
Threat of attached to
Use low price to defend core competency
differentiating attributes,
against substitutes. protect against
Substitutes reducing threat of
substitutes.
substitutes.
Rivals cannot meet
Better able to compete Brand loyalty to keep
Rivalry on price. customers from rivals.
differentiation-focused
customer needs.
10. Criticisms of generic strategies
Michael Treacy and Fred Wiersema (1993) modified Porter's three
strategies to describe three basic "value disciplines" that can create
customer value and provide a competitive advantage. They are
operational excellence, product innovation, and customer intimacy.
• Several commentators questioned the use of generic strategies
claiming they lack specificity, lack flexibility, and are limiting. Trying
to apply generic strategies is like trying to fit a round peg into one of
three square holes: You might get the peg into one of the holes, but
it will not be a good fit.
• In particular, Millar (1992) questions the notion of being "caught in
the middle". He claims that there is a viable middle ground between
strategies. Many companies, for example, have entered a market as
a niche player and gradually expanded.
• According to Baden-Fuller and Stopford (1992) the most successful
companies are the ones that can resolve what they call "the
dilemma of opposites".
• From Wikipedia, the free encyclopedia.
11. References
• Michael E Porter, Competitive Strategy, Free Press, 1980
• Philip Kotler, Marketing Management, Analysis, Planning, and
Control, Prentice Hall, 1975(3rd edition) - This was a textbook that
went through 6 editions and was used in MBA courses for 20 years.
It talks about all three of these strategies.
• Treacy, M. and Wiesema, F. (1993) "Customer intimacy and other
Value Disciplines", Harvard Business Review Jan/Feb 1993.
• Wendell R Smith, Product Differentiation and Market Segmentation
as Alternative Marketing Strategies. Journal of Marketing, July 1966
- This is probably the first in depth description of these two
strategies.
• Millar, D. (1992) "The Generic Strategy Trap", Journal of Business
Strategy vol 13, no 1, Jan-Feb, 1992.
• Baden-Fullen, C. and Stopford, J. (1992) Rejuvenating the Mature
Business, Harvard Business School Press, Boston, 1992.