This presentation explains Porter's Competitive Strategies with examples from bollywood chosen as a service sector.

1. Porter’s Competitive
Strategies
A take into the service sector
By Ankita Baid
St.Xavier’s College,Kolkata
PGDMSM

2. Introduction
 Michael Porter is a professor at Harvard Business
School.
 A firm’s success in strategy rests upon how it positions
itself in respect to its environment.
 Michael Porter has argued that a firm's strengths
ultimately fall into one of two headings: cost advantage
and differentiation.
 By applying these strengths in either a broad or narrow
scope, three generic strategies result: cost leadership
differentiation, and focus

3. Cost
Leadership
• Superior profits
through lower
costs.
Differentiation
• Creating a
product or service
that is perceived
as being unique
“throughout the
industry”
Focus
• Concentrating on
a limited part of
the market.
Competitive Strategies

4. Porter’s Competitive Strategy
Target Scope
Advantage
(Low Cost)
Advantage
(Product
Uniqueness)
Broad
(Industry wide)
Cost Leadership Differentiation
Narrow
(Market wide)
Focus Strategy
(low cost)
Focus Strategy
(differentiation)

5. Cost Leadership Strategy
 Strategy where a firm tries to become the low-cost
producer in an industry
 The firm could lower selling price and still make profits,
though emphasis is on lower costs and not low selling
prices
 Targets a broad market.
 As industry matures & prices decline, firms that can
produce cheaper will remain profitable for a longer
period of time
 During price war, firm is profitable while competition
suffers losses
 Especially beneficial : where customers are price
sensitive

6. Differentiation Strategy
 A differentiation strategy calls for the development of a
product or service that offers unique attributes that are
valued by customers.
 Customers perceive the product to be different and
better than that of rivals.
 The value added by the uniqueness of the product may
allow the firm to charge a premium price for it.
 Differentiation can be based on product image or
durability,after-sales,quality,additional features.
 Differentiation can lead to profitability, but not high
market share

7. Focus Strategy
 The focus strategy concentrates on a narrow segment,
particular niche market - particular buyer group, segment of
the product line, or geographic market .
 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.
 However, firms pursuing a differentiation-focused strategy
may be able to pass higher costs on to customers since close
substitute products do not exist.

8. Service Sector Selected
Entertainment Industry: Bollywood

9. Cost Leadership:
Nawazuddin Siddiqui

10. Why Nawazuddin Siddiqui?
 He is a low cost actor
 Performed in Low budgeted films
 Most of them were a hit at the box office
 Widely accepted by the audience
 Even though cost is low no compromise in
quality
 Acting skills are excellent

11. Notable Contribution to the Industry
Peepli Live is a 2010 Indian satirical comedy
film that explores the topic of “farmer suicides"
and the subsequent media and political
response.It is a multi starrer film.
Siddiqui played the role of a journalist
Budget:10 crore
Collection:40 crore
Kahaani is a 2012 Indian Hindi mystery thriller
film. Vidya balan played the protagonist and
Siddiqui played Supporting Actor as an IB Officer
and won the special jury award for it.
Budget:8 Crore
Collection:78 crore

12. Gangs of Wasseypur is a 2012 Indian two-
part crime film centered on the coal mafia of
Dhanbad, and the underlying power struggles,
politics and vengeance between three crime families.
Nawazuddin Siddiqui won the special jury award for it
Budget:18 crore
Collection:50 crore
Nawazuddin Siddiqui has worked in many other movies with other
big stars for eg: Aamir Khan in Talaash and won the award for Best
Supporting Actor. Although Siddiqui himself is not a big name in the
industry but his work has always proven his mettle. Even though he
has featured in low budgeted films but those films have not ceased
to leave their mark with a special mention to Siddiqui.
Explaining this Analogy with Nazauddin Siddiqui as a Cost leader is
thus significant in understanding of Cost Leadership under Porter’s
Competitive Positioning Strategies.

13. Differentiation: Priyanka Chopra

14. Why Priyanka Chopra?
 Priyanka Chopra is an Indian actress, singer,
philanthropist.
 The winner of the Miss World 2000 pageant.
 One of the highest-paid actresses in the world
 One of India's most popular celebrities and versatile
actress and performed both in Bollywood and
Hollywood
 Chopra has also gained recognition for her sense of
style.
 She has received numerous awards, including
a National Film Award, and five Filmfare Awards, and
was awarded the Padma Shri, the fourth highest
civilian award, by the Government of India in 2016.
That same year, Time named her as one of the 100
most influential people in the world

15. Notable Contributions to the Industry
 Chopra gained recognition for her versatility in
portraying a range of unconventional characters in the
films:
 Aitraaz (2004)
 Kaminey (2009),
 7 Khoon Maaf (2011),
 Barfi! (2012),
 Mary Kom(2014),
 Dil Dhadakne Do (2015),
 Bajirao Mastani (2015),

16. Entry into Hollywood
 In 2015, she began starring as Alex Parrish on
the ABC thriller series Quantico, becoming the first
South Asian woman to headline an American network
series.
 She will be starring in May2017 release Baywatch
with Dwayne Johnson, popularly known as The Rock
from WWE
 She has also sung hollywood songs like "Exotic"
featuring American rapper Pitbull, “In My City” and “I
Can’t Make you Love Me”.

17. Priyanka Chopra is thus the most versatile actress in the industry
as she has performed such different characters and has improved
tremendously over the years. Her entry into hollywood has also
been very significant with Quantico. Her Unique characters in
different movies in addition to her venture into hollywood singing
has made her quite a differentiator.
Explaining this Analogy with Priyanka Chopra as a differentiatior is
thus significant in understanding of Differentiation under Porter’s
Competitive Positioning Strategies.

18. Focus: Irrfan Khan

19. Why Irrfan Khan?
 Irrfan Khan is an Indian film actor known for his
works predominantly in Hindi cinema. He is also
known for his works in British films,and Hollywood.
Film critics, contemporaries, and other experts consider
him to be one of the finest actors in Indian cinema for
his versatile and natural acting. In 2011, Khan received
the Padma Shri, India's fourth highest civilian honour
for his contribution to the field of arts.
 There are a particular segment of people who recognize
and appreciate his works. As he has mostly performed
in serious or art films he has got a particular segment
of fan following. His movies may not be liked by the
masses in general.

20. Notable Contribution to the Industry
Paan Singh Tomar is a 2012 Indian
biographical film based on the true story of the
athlete Paan Singh Tomar. A soldier in the Indian
Army, he wins a gold medal at the Indian
National Games, but is forced to become a
notorious bandit.
He received National Film Award for Best Actor
for this film.
The Lunchbox is a 2013 Indian epistolary romantic
film with Irfan Khan as the lead actor. The film was
quite unusual and ended on a very abrupt note. Most
of the audience might have not understood the movie
but still the movie received several awards. These
type of movies have a particular segment of audience
who like and appreciate them.
He received Asian Film Award for Best Actor for this
film

21. Piku is a 2015 Indian comedy-drama film directed
by Shoojit Sircar. It stars Deepika Padukone, Amitabh
Bachchan and Irrfan Khan. It tells the story of the short-
tempered Piku Banerjee (Padukone), her grumpy, ageing
father Bhashkor (Bachchan) and Rana Chaudhary (Khan),
who is stuck between the father-daughter duo, as they
embark on a journey to Kolkata.
He received Best Actor award at the Indian Film Festival of
Melbourne for Piku
He has performed in international films, such as Life of Pi, New York -I Love
You, The Amazing Spider-Man and Jurassic World, with a featured role
alongside Tom Hanks in the 2016 adaptation of Dan Brown's novel Inferno.

22. Last Year, he was seen in a video by the AIB-The Party Song which
was released only on You Tube. The video has got 86,69,967 views
till date. The video was a hit among the youngsters. These types
of songs will not be liked by the people from higher age groups.
This song was targeted only for the internet users and more
specifically the youth.
Explaining this analogy with Irrfan Khan under focused or niche
category is thus significant in understanding of focus under
Porter’s Competitive Positioning Strategies.

23. Conclusion
 In 1980s when this concept was formulated, the environments
were relatively stable there was no requirement for flexibility in
business strategies.
 After eleven years Porter revised his thinking and accepted the
fact that “hybrid business strategy” could exist.
 The highly volatile and turbulent market conditions will not
permit survival of rigid business strategies
 Depending on the market and competitive conditions hybrid
strategy should be adjusted regarding the extent which each
generic strategy (cost leadership or differentiation or focus)
should be given priority in practice.