The document discusses Porter's generic competitive strategies framework, which identifies three strategies for achieving competitive advantage: cost leadership, differentiation, and market segmentation/focus. Cost leadership involves having the lowest production and distribution costs to offer the lowest prices. Differentiation involves making products unique in some way to appeal to customers who are less price-sensitive. Market segmentation/focus involves tailoring offerings to serve specific market segments. Examples are provided of companies that employ each strategy successfully. Criticisms of the framework are noted, but it is still viewed as providing a useful model for understanding sources of competitive advantage.
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...!! :)
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
Corporate level strategies are basically about the choice of direction that a firm adopts in order to achieve its objectives.
Corporate strategy is essentially a blueprint for the growth of the firm.
The corporate strategy sets the overall direction for the organization to follow.
It also spells out the extent, pace and timing of the firm’s growth.
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...!! :)
Professor Michael Porter suggested three general positioning strategies to achieve competitive advantage :
Low Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
The Generic Competitive Strategy (GCS) is a methodology designed to provide companies with a strategic plan to compete .The GCS is useful when a company is looking to gain an advantage over a competitor
Corporate level strategies are basically about the choice of direction that a firm adopts in order to achieve its objectives.
Corporate strategy is essentially a blueprint for the growth of the firm.
The corporate strategy sets the overall direction for the organization to follow.
It also spells out the extent, pace and timing of the firm’s growth.
A retrenchment strategy which is considered the most extreme and unattractive is the liquidation strategy, which involves closing down a firm and selling its assets. It is considered as the last resort because it leads to serious consequences such as loss of employment for workers and other employees, termination of opportunities where a firm could pursue any future activities and the stigma of failure.
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
this presentation pays attention to the to competitor analysis and how to conduct especially for an entrepreneur that's working on a shoe string budget.
A retrenchment strategy which is considered the most extreme and unattractive is the liquidation strategy, which involves closing down a firm and selling its assets. It is considered as the last resort because it leads to serious consequences such as loss of employment for workers and other employees, termination of opportunities where a firm could pursue any future activities and the stigma of failure.
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
this presentation pays attention to the to competitor analysis and how to conduct especially for an entrepreneur that's working on a shoe string budget.
Competitive dimensions - strategic management - Manu Melwin Joymanumelwin
According to Porter, two competitive dimensions are the keys to business-level strategy.
The first dimension is a firm’s source of competitive advantage.
The second dimension is firms’ scope of operations.
Business level strategies - strategic management - Manu Melwin Joymanumelwin
Business-level strategy addresses the question of how a firm will compete in a particular industry.
It is a general way of positioning a firm within an industry.
How to beat the competition with smart market positioning
What is a competitive advantage? What is positioning? Cost leadership/ differentiation. How can you assess the competition?
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.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
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For more information, visit-www.vavaclasses.com
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
2. Introduction: The rationale behind studying competition
• Today, companies face their toughest competition ever.
• Companies use their understanding to design market offers to deliver
more value than the offers of competitors seeking to win the same
customers.
• Companies must also understand their competitors, identify and analyze
their strategies to position themselves in such a way as to gain the greatest
possible competitive advantage against competitors in the marketplace.
Emma Olohan
3. Porter’s Generic Strategy Framework
• Michael Porter has suggested three general types of positioning strategies to
achieve competitive advantage.
• These three generic strategies are defined along two dimensions: strategic scope
and strategic strength.
Strategic scope looks at the size and composition of the market you intend
to target.
Strategic strength is a supply-side dimension and looks at the strength or core
competency of the company/brand.
Emma Olohan
4. Porter’s Generic Strategy Framework
• The three strategies are:
1.Cost leadership,
2.Differentiation, and
3.Market Segmentation (or focus)
• Market segmentation is narrow in scope
while both cost leadership and
differentiation are relatively broad in
market scope.
Emma Olohan
5. Examples of Companies That Use Cost Leadership Strategies
• Wal-Mart is famous for EDLP, achieved by developing close
relationships with its suppliers and vendors to achieve cost savings
through large volume purchases and pass these savings to the
consumers.
• Dell Computers :achieved market share by keeping low inventories
and only building computers to order, procurement advantages from
preferential access to raw materials, or backward integration.
• Low-cost budget Irish based airlines Ryanair who despite having fewer
planes than the major airlines, were able to achieve market share
growth by offering cheap, no-frills services at prices much cheaper than
those of the larger competitors.
Emma Olohan
6. Cost Leadership
• A company tries to reduce its overall production and distribution costs.
• It wins market share by appealing to cost-conscious customers.
• It sets the lowest prices in the target market segment, or at least the lowest price
to value ratio.
• 3 ways to achieve this:
Economies of scale
low direct and indirect operating costs
control over the supply chain
Emma Olohan
7. • India’s largest steel company Tata Steel, the cost leader in the steel manufacturing sector
owns raw material assets such as coaland limestone mines through joint ventures or
completely, with the assets spread across countries such as Australia, Oman and
Mozambique. Tata Steel has largely been able to withstand raw material price fluctuations
due to captive iron ore mines.
• Reliance Industries has become a global leader in various business activities based on
innovation and cost by achieving more effecient production arising from experience and
economies of scale, innovation in production methods, and differential Low-Cost Access to
Productive Inputs.
• Disadvantage : lower customer loyalty, a reputation for low quality, ends up in price wars,
non sustainable
Emma Olohan
8. Differentiation
• A company concentrates on differentiating the products in some way
in order to compete successfully.
• appropriate where the target customer segment is not price-sensitive,
the market is competitive , customers have very specific under-served
needs and the company/brand has unique resources to satisfy these
needs in ways that are difficult to copy.
• Includes patents or other Intellectual Property (IP), unique technical
expertise, talented personnel or innovative processes. Successful
brand management also results in perceived uniqueness even when
the physical product is the same as competitors. Fashion brands rely
heavily on this form of image differentiation.
Emma Olohan
9. Examples of differentiation
• Differentiation through Multiple sources: L&T, the engineering company/brand ,
recruits engineers with excellent qualification and claims superiority in executing
projects.
• Coke and Pepsi differentiated through brand power.
• Tesla through an electric car
• Product Differentiation based on ingredients: Toothpaste brands
Emma Olohan
10. Examples of differentiation
Product Differentiation through Additional features:
Samsonite suitcases with wheels , a unique convenience to user
Product Differentiation by Packaging
• Harpic Toilet cleaner with an application friendly nozzle
Product Differentiation by Design:
• especially for women.
Emma Olohan
11. Market Segmentation / Focus
• The company/brand focuses its marketing effort on serving a defined, focused
market segments with a narrow scope by tailoring its marketing mix to these
specialized markets, it can better meet the needs of that target market.
• The company/brand typically looks to gain a competitive advantage through
product innovation and/or brand marketing rather than efficiency.
• It is most suitable for relatively small company/brands but can be used by any
company.
• A focused strategy should target market segments that are less vulnerable to
substitutes or where a competition is weakest to earn above-average return on
investment.
Emma Olohan
12. Market Segmentation / Focus
• The focus strategy has two variants:
(a) In cost focus, a company/brand seeks a cost advantage in its target
segment, It exploits differences in cost behavior in some segments .
For instance, Southwest Airlines, famous for its low cost focus follows
basically a linear route structure. It only flies one type of airplane and
it wants to stay in high-density markets and has been highly efficient.
(b) Differentiation focus a company/brand seeks differentiation in its
target segment. It exploits the special needs of buyers in certain
segments. Ferrari , targets high performance sports car segment and
due to differentiation based on design, high performance and grand
prix records which allows it to charge a premium price.
Emma Olohan
13. Stuck in the middle
• A company’s failure to make a choice between cost leadership and differentiation
essentially implies that the company is stuck in the middle.
• There is no competitive advantage for a company that is stuck in the middle and
the result is often poor financial performance .
• However, companies like Toyota and Benetton have adopted more than one
generic strategy. Both these companies used the generic strategies of
differentiation and low cost simultaneously, which led to the success of the
companies.
Emma Olohan
14. Criticisms of Porter’s Generic Strategy Framework
• A business can employ a hybrid strategy without being struck in the middle.
Nissan, for instance.
• Cost leadership does not sell products itself.
• Differentiation can be used to increase sales volume rather than charging a
premium price.
• Price can sometimes be used to differentiate.
Emma Olohan
15. Criticisms of Porter’s Generic Strategy Framework
• The competence based strategy framework supersedes the generic strategy
framework.
Despite these criticisms, porter’s model can constitute the basis of a useful framework
for categorizing and understanding sources of competitive advantage.
Emma Olohan
16. Looking forward: The road ahead
• The popular post-Porter model was presented by W. Chan Kim and Renée Mauborgne
in their 1999 Harvard Business Review article "Creating New Market Space“, described a
"value innovation" model in which companies must look outside their present
paradigms to find new value propositions.
• Their approach fundamentally goes against Porter's concept that a company/brand
must focus either on cost leadership or on differentiation. The concept is popularly
known as Blue Ocean Strategy.
Emma Olohan