Michael porter developed 3 generic strategies: cost leadership‚ differentiation and focus. They are developed to create a defendable position in the long-run‚ outperforming competition and establish a competitive advantage. However does the generic strategy lead to sustainable competitive strategy? This analysis will explain in detail. Cost leadership means setting out to become the low-cost producer of its industry. Each industry is different and provides with diverse problems. Cost leadership
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According to Michael C. Porter‚ the porter’s three (3) generic strategies are very important strategies‚ which can be applied to products and services in any industry or organization regardless of its size. The Three Porter’s Generic Strategies In order to gain competitive advantage‚ Michael Porter developed three generic strategies that a company could use; The Cost Leadership Strategy‚ The Differentiation Strategy and the Focus Strategy. These strategies have been used by various organizations to become
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Porter’s Generic Strategies Porter’s notion on “stuck in the middle” or “hole in the wall” is debatable‚ it being mutually exclusive. It might be true in some cases but not all the time. Even beyond Porter’s generic strategies‚ Toyota has been operating and already proven that it’s possible to be a low cost producer of a differentiated product. It was able to achieve leadership in North America‚ surpassing General Motors. They continuously find ways to reduce production costs and at the same optimize
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THEME 8: GENERIC STRATEGIES 1. Introduction. 2. The Porter’s approach: competitive strategies (cost advantage‚ differentiation advantage and specialization). 3. The Ansoff’s approach: the Growth Matrix (market penetration‚ product development‚ market development‚ and diversification). 4. An integrating approach. © Alfonso VARGAS SÁNCHEZ 1 Hope is not a strategy‚ specially when internationalizing the company is the intention 2 Strategic Analysis: Compulsory Questions What business
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Porter ’s Generic Strategies If the primary determinant of a firm ’s profitability is the attractiveness of the industry in which it operates‚ an important secondary determinant is its position within that industry. Even though an industry may have below-average profitability‚ a firm that is optimally positioned can generate superior returns. A firm positions itself by leveraging its strengths. Michael Porter has argued that a firm ’s strengths ultimately fall into one of two headings: cost
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Introduction. In this assignment I am going to explain the following concepts‚ generic strategies‚ alternative directions and alternative methods. Indeed‚ I would like to support these concepts by referring my work to the automobile sector (as a continuing line provided with the Morgan´s example in class). I am going to use the example of General Motors and Ford‚ they are well known and also provide us a long struggling and interesting history. The first part of my assignment gives a theoretical
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37 The Generic Strategy Trap Danny Miller Management experts claim that for a company to thrive‚ it mus concentrate on a single generic strategy—on one thing it does better th its rivals. But specialization also has its disadvantages. The author sugge that a broader‚ mixed approach may be preferable. S ince the publication of Michael Porter ’s Competitive Strategy‚ many experts on strategy have been extolling the virtues of pure generic strategies. Porter argued that by adeptly
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Cardinal Health‚ Inc. Company History Cardinal Health was founded in 1971 when founder Robert D. Walter opened a small distribution center in Columbus‚ Ohio‚ then named Cardinal Foods‚ Inc. In 1979 the food distributor branched out into pharmaceutical distribution when the company purchased a Zanesville‚ Ohio‚ drug distributor and became known as Cardinal Distribution ("Our history‚" 2011). The company evolved over the next several years; they went public and was renamed Cardinal Health in 1983
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Strategic Management Case Cardinal Health Inc. by Developed for Study Assignment Purposes for MBA Course at American Military University BUSN 620 Strategic Management Cardinal Health helps pharmacies‚ hospitals and ambulatory care focus on patient care 1 Disclaimer and Material Purpose Material Purpose: This document and all of the materials contained within are strictly for study assignment purposes to fulfill MBA course BUSN 620 Strategic Management on August 01‚ 2011-September 25‚ 2011
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Case 18: Cardinal Health‚ Inc. (A) By Mary B. Teagarden As printed in Strategic Management: Formulation‚ Implementation‚ and Control By John A. Pearce II and Richard B. Robinson February 24‚ 2012 Since its inception in the early 1970s‚ Cardinal Health has grown into one of the leading health care service providers in the world. A Fortune 500 company‚ Cardinal began as a food distributor‚ and then transformed itself under the leadership of Robert Walter into the foremost distributor of
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