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Porters Three Generic Strategies in Business - Essay Example

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This essay " Porter’s Three Generic Strategies in Business" discusses a super competitive environment of the concept of Michael Porter. This essay analyses three generic strategies: cost leadership strategies, differentiation strategy, and focus strategy. The essay considers the mobile phone industry Apple…
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Porters Three Generic Strategies in Business
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Download file to see previous pages Choosing a generic strategy will allow different companies to position themselves successfully in a highly competitive world. In this context, Michael Porter has talked about three generic strategies. Those generic strategies are cost leadership strategies, differentiation strategy, and focus strategy. Profitability is the primary objective of any organization. That primary objective depends on the attractiveness of the industry. Positioning in an industry is also an important determinant for organizations to attain competitive advantages. Proper positioning in an industry can make differences for organizations. Profitability varies from industry to industry. According to Porter organizational strength can be determined on the basis of cost advantage and differentiation. These strengths can be applied in two ways either broadly or narrowly. Porter further argued that for attaining sustainable competitive advantages in any industry organizations should concentrate only one strategy to avoid any confusion or wastage of resources.
According to this strategy cost leadership can be achieved when an organization offers lower costs than competitors and operates on a broad segment or industry. Differentiation strategy is all about offering unique products to the customers (Kossowski, 2007). Focus strategies focus on specific niche markets and try to grab the pulse of that market. Then they offer unique products or low-cost products.
In the mobile phone industry, Apple follows the differentiation strategy. Intentionally the organization has consistently going for this strategy. It is being noticed that in the mobile phone industry in compared to all other competitors’ product prices of Apple are always higher. Still, the brand enjoys significant brand loyalty across its worldwide customer base. Over the years the organization has maintained this strategy and the organization does not have any intention to shift their focus from this strategy.   ...Download file to see next pagesRead More
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