Ansoff versus Three Generic Strategies - Essay Example

Comments (1) Cite this document
Summary
Porter’s Five Forces is considered as one of the most important strategic frameworks in the strategic management to understand and explore the competitive nature of an industry. It also serves as an important tool for any organization to study as to how the different competitive forces may have an impact on it and how it can respond to them. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.5% of users find it useful
Ansoff versus Three Generic Strategies
Read TextPreview

Extract of sample "Ansoff versus Three Generic Strategies"

Download file to see previous pages What is also important to understand that Porter also suggested three important strategies which can be used in order to successfully deal with five forces. Though Porter’s Generic strategies as well as the Five Forces model is considered effective however, there are also other alternative models outlining as to how a firm can successfully deal with the competition and make strategic decisions. One such model is the Ansoff’s Matrix which is also called the Product Market Expansion Grid. Developed in 1975, this matrix largely depends upon the product as well as the industry in which a firm operates and resultantly offers different choices to a firm in order to deal with different strategic challenges. Ansoff’s Matrix suggests four important strategic alternatives available to a firm to successfully operate under a given competitive scenario. These strategies include market penetration, product development, Market Development as well as diversification. This paper will attempt to first explain and explore Five Forces Model along with three generic strategies as suggested by Porter to successfully outperform other firms in the industry. Finally a comparison will be made between three strategies and the Ansoff’s Matrix to strategic development....
These are some of the key factors which need to be looked at in order to critically assess as to how the suppliers may have an impact on the firm. This is also critical owing to the fact that reliance on one supplier or few suppliers may geoperadize the overall position of a firm within an industry and therefore it is critical for a firm to assess this power in more critical manner. Buyers’ Power Buyers’ Power is also critical in the sense that it directly defines as to how the demand dynamics of the firm will behave if buyers have relatively superior bargaining power. This factor becomes more critical if the firm is involved in the B2B type of business with large buyers forming stronger clout. Factors such as brand identity, sensitivity towards price changes, threat of backward integration as well as the availability of substitutes can really define as to how buyers may have an impact on the firm. Threat of New Entrants When an industry is profitable and the prospects of earning profitability are sizeable, new firms tend to enter into the market in order to share the gains. Thus the overall threat of new entrants is considered as significant for any firm working in any industry. Factors such as barriers to entry, cost advantages as well as economies of scale and stronger brands are some of the factors which can allow a firm to successfully meet the threat of new entrants in the market. It is also important for a firm to critically assess this possibility and develop its competitive advantage and core competencies so that it can successfully withstand the challenges posed by the new firms. Threat of Substitutes Threat of substitutes can also be an important force which can result into significant strategic challenges for a firm. Threat of substitutes ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Ansoff versus Three Generic Strategies Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved de https://studentshare.org/business/1390875-ansoff-versus-three-generic-strategies
(Ansoff Versus Three Generic Strategies Essay Example | Topics and Well Written Essays - 2500 Words)
https://studentshare.org/business/1390875-ansoff-versus-three-generic-strategies.
“Ansoff Versus Three Generic Strategies Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/business/1390875-ansoff-versus-three-generic-strategies.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
al
alicremin added comment 9 months ago
Student rated this paper as
I never thought 2500 words essay could be written in such a free manner. I loved the background of this essay. Will definitely use it for my own work!

CHECK THESE SAMPLES OF Ansoff versus Three Generic Strategies

Mutual Exclusiveness of Generic Strategies

...?Mutual Exclusiveness of Generic Strategies Summary This critical analysis provides insights into the mutual exclusiveness of cost leadership and differentiation as components of generic strategies. The essay looks at the various justifications why cost leadership and differentiation should not be seen as being mutually exclusive. Through this critical analysis, the fear that firms employing both strategies simultaneously run the risk of being stuck in the middle is dispelled. To prove that integration of the two strategies into the operations or a business organization is possible, several examples have been draw ranging from the cost...
8 Pages(2000 words)Essay

Ansoff Matrix

...New Type Conglomerate Diversification Source: Ansoff, 1965 Unrelated diversification is seen as having some synergy with the original organisation, but primarily is moving away from the organisation's core competencies. Related or unrelated, past performance for both diversification strategies have exhibited uncertainty, albeit some researchers argue that related diversification is generally more profitable (Macmillan et al. 2000; Pearson 1999). Diversification is generally perceived as a high-risk strategy as it involves embarking into the unknown. EdgeCAM Synopsis Pathtrace Limited is a private limited company formed in 1983...
12 Pages(3000 words)Research Paper

Generic Strategies of Sony

... the above companies as really successful for Japan. The writers explained that these companies are among global leaders due to their well developed and planned corporate strategies, further to their operational excellence. Porter (1991) emphasizes positioning and how a company is positioned in its competitive environment. He suggests that a company can achieve competitive advantage by following one of the three generic strategies Porter's generic strategies are the following: cost leadership, differentiation and focus (niche). Cost Leadership refers to being a producer of low cost. It is a strategy mostly followed by the leaders of a particular industry since they have the bargaining power to achieve lower purchase costs... Brief profile of...
10 Pages(2500 words)Case Study

Porters generic strategies for Glaxo Smith Kline

...Topic: Lecturer: Presentation: Introduction There are four generic strategies for maintenance of competitiveness in an organization that were developed by porter. They include the Cost leadership strategy whereby a firm lowers its cost of production through identifying cheaper sources of raw materials than competitors, adopting efficient means of production to lower the inputs, and unnecessary costs avoidance among other practices that give it a competitive advantage compared to other firms that may be producing at a higher cost (Porter, 1998). Differentiation strategy on the other hand aims at developing products that have unique and desirable characteristics to the...
4 Pages(1000 words)Essay

Porters generic strategies for Glaxo Smith Kline

...Porter’s generic strategies for GlaxoSmithKline Table of Contents Table of Contents 2 Porter’sGeneric Strategy 3 Resources of GlaxoSmithKline (GSK) 4 Capabilities 5 References 6 Porter’s Generic Strategy According to Michael Porter there are four business strategies which are generic in nature. Following figure represents these four strategies [Source: Tutor2u.net] The cost leadership and differentiation strategies are adopted when the firm is operating in a broad range of market, but cost focus and...
2 Pages(500 words)Essay

Generic Strategies model in sucessful Management

...Wal-Mart Wal-Mart Stores Inc., a public corporation of the United s, operateshuge discount department stores around the globe. The specialty of the store is based on its very low prices and variety as well. The company stores carry general merchandise as well as grocery, pharmaceuticals as well as various other items for sale. Its reputation for value for money andhas made it very popular across the globe with generating as much as 51% of its US$258 billion sales in the U.S alone. Wal-Mart thrives on its differentiation strategy of using its IT system very effectively which is of world class and can help the company at various fronts. For example, due to its information technology...
3 Pages(750 words)Essay

Generic Strategies Model by Charles O. Godornes

...Generic Strategies Model by Charles O. Godornes Six Thousand Promotions and Store, Indie Tees Shop and Meet up Station are retail firms that carries different brands of clothing line’s who sells T – shirts to their market. These retail firms exhibit and bear their own store concept. Six Thousand Promotions and Store has a graffiti type of ambience, Indie Tees posses a modern look and feel of their shop and Meet up Station has a “fell at home” ambience in their store. As a retail firm, these 3 shops cater to the wholesaling of their products, reservations, promotions of shirts and international and nationwide deliveries. In order for these businesses to be successful they have to follow... and...
2 Pages(500 words)Essay

Porters generic strategies

...Porter’s generic strategies Question 1 Rough plan Porter’s generic strategies include: Cost leadership Differentiation strategy Market niche A company can be said to enjoy a competitive advantage if it has market dominance over its competitors. It is normally achieved by setting-up business strategies such as offering customers goods of desirable value and reduced cost. “Success in an organization depends on good management and the ability to develop uniquely hard to imitate commodities” (Badescu, 2009). Michael Porter developed the following generic strategies. Cost leadership A company aims at...
5 Pages(1250 words)Essay

Porter's generic strategies

...The U.S airways and Porters generic strategies The U.S airways has of the recent past tried to adopt different strategies that maximize profits and reduce production or labor costs, which enables them to achieve competitive advantage in the crowded market. Most customers prefer the best services offered to them at affordable costs, and this has made the U.S airways apply Michael Porters generic strategies to compete against their competitors such as Southwest, Delta Airlines, and Jet Blue just to name a few (Eldring, 2009). The three strategies namely; cost leadership, differentiation, and focus were established by...
1 Pages(250 words)Case Study

Marriott Hotel Ansoff matrix

...Marriott Hotel Ansoff Matrix Almost every business desires to grow and expand its activities (Waters, 2006). Marriot Hotelhas over the past years expanded its operations to numerous regions both within United States and across the world (Burkitt, 2012). It is anticipated that the company will set up 200 additional hotels across nations outside United States (Marriott News Center, 2014). This growth can be attributed to the development and adoption of the Ansoff’s matrix strategy. The Ansoff matrix is employed as a model for setting goals within the company. A review of Marriot’s expansion strategy shows that the company has adopted “market penetration, market development and diversification” strategies. Market penetration refers... the...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Ansoff versus Three Generic Strategies for FREE!

Contact Us