• The Porter Generic Strategy framework enables an organisation to check the logic of its current competitive strategy and if necessary- the organisation can look for a new strategy • COMPETITIVE ADVANTAGE- the ability for a company to add more value for its customers than its rivals (therefore hold a position of relative advantage)….. The key drivers of competitive advantage are cost leadership and differentiation product • COMPETITIVE STRATEGY- the means by which an organisation seeks to achieve
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focus on identifying a microcosm of the industry or serve the entire market? 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
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In Malaysia‚ Giant will step into the age of 66 in year 2010; they are pioneer in the concept of modern supermarket shopping and has been ranked 11th of Most Valuable Brand in year 2007 and 12th in 2008‚ they also rewarded as the Top Retailer in Malaysia and Best of the Best in Asia Pacific Retailer’s Award for 2 consecutive years in 2007 and 2008. They also succeed in the Best Brands in Consumer (Hypermarkets)‚ Brand Laureate Award 2007/208 for Corporate Branding and also the Excellence Service
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Business Generic A firm positions itself by leveraging its strengths. Michael Porter has argues that a firm’s strengths ultimately fall into one of two headings: cost advantage and differentiation which are applied at the business unit level. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them‚ lead to three generic strategies for achieving above average performance in an industry: cost leadership‚ differentiation‚ and focus
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and implications for the same will be provided. In the next section‚ strategic groups operating in the Automobile industry will be identified and analyzed. A Strategy Canvas will be formulated and blue ocean space will be suggested. Lastly‚ generic strategy as pursued by strategic group will be explained along with its response to macro and industry forces. The reports will conclude with a summary of key findings. 2. INTRODUCTION 2.1 Rationale for the research The research
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analyzing the multiple sources of Samsung’s competitive advantage you are invited to make recommendations about how Samsung should respond to the growing Chinese threat of entry. It should be noted that for the father of Competitive Strategy‚ Michael Porter‚ it was axiomatic that firms could not pursue both lowest cost and differentiation strategies simultaneously. His research showed that firms that tried to bridge this contradiction became "stuck in the middle"‚ doomed to lower than average profits
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In the article "Generic Strategies"‚ the world-renowned master of competitive strategy‚ Michael Porter‚ pilots the reader through a macro-level guide to the three chief mechanisms that a company can use to achieve that elusive business world goal: Sustainable competitive advantage. Porter exalts that companies are essentially faced with a mutually exclusive decision in terms of broad level strategy. Deciding between more than one broad or generic strategy significantly increases the risk that the
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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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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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Generic Competitive Strategies A firm’s relative position within its industry determines whether a firm’s profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. Q: Definition of Generic Competitive Strategy-02 Basic approaches to strategic planning that can be adopted by any firm in any market or industry to improve its competitive performance. More precisely‚ generic strategies are approaches
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