StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Generic Strategies for Competitive Advantage - Essay Example

Comments (0) Cite this document
Summary
The writer of the essay "Generic Strategies for Competitive Advantage" suggests that in a market-place where companies crowd to grab the few available customers, a business has to formulate an amicable strategy to win the majority of the buyers and maximize profit…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.7% of users find it useful
Generic Strategies for Competitive Advantage
Read TextPreview

Extract of sample "Generic Strategies for Competitive Advantage"

Download file to see previous pages In 1985, Michael Porter came up with a set of strategies that he had termed as Generic Strategies. These strategies have, since then, been universally plausible to many enterprises across the globe. The Generic Strategies were proposed by Porter so as to help businesses boost their competitive advantage over the others. The competitive advantages are the unique best practices that single out a business in a competitive marketplace. The three Generic Strategies are Cost leadership, Differentiation, and Focus strategies. These three approaches can be applied to all forms of organizations that deal with either goods or services delivery (Porter, 1980, Pp87).
The Cost Leadership is one form of generic strategy that can be used by a company to gain the competitive advantage over its competitors in a competitive market. The cost leadership generic strategy can be applied in two different ways so as to a maximum competitive advantage. Cost Leadership, as it sounds, simply means gaining competitive advantage in the market through low cost. The cost leadership as a strategy involves two methods: One, a company can strategize to make maximum profit by lowering the cost of production while still charging average prices in the industry. Two, increasing the market share through lowering prices of the products while still making some reasonable profit (Kiechel, 2010, Pp99).
Lowering the cost of production will help an enterprise maximize profit since there will relatively lower input in the business. Lowering the production cost involves cutting the expenditure on supplies and reducing the wages offered to the workers. In some desperate cases, companies are forced to reduce the number of employees to allow them to make savings. However, this can have usually painted a bad image of a company in the market. In the long run, companies may lose potential customers instead of making the intended profit. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Generic Strategies for Competitive Advantage Essay, n.d.)
Generic Strategies for Competitive Advantage Essay. Retrieved from https://studentshare.org/marketing/1864516-is-written-in-assignment-criteria-writer-should-choose-one-from-below
(Generic Strategies for Competitive Advantage Essay)
Generic Strategies for Competitive Advantage Essay. https://studentshare.org/marketing/1864516-is-written-in-assignment-criteria-writer-should-choose-one-from-below.
“Generic Strategies for Competitive Advantage Essay”, n.d. https://studentshare.org/marketing/1864516-is-written-in-assignment-criteria-writer-should-choose-one-from-below.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Generic Strategies for Competitive Advantage

Competitive Advantage

... in a certain marketplace and these could be required resources to attain minimum requirement of customer. For instance, high demands by contemporary suppliers’ retailers imply that such suppliers must have advanced information technology skills to be able to meet requirements of retailers (Versaevel, 2007). For an organisation to attain and sustain competitive advantage, ethics and social responsibility have a role to play. Social responsibility is the way organisations combine social, economic, and environmental issues into the organisational culture, beliefs, decisions, functions and strategy in an effective and transparent way to create efficient practices in the company, generate wealth and enhance social development (Sims, 2003...
5 Pages(1250 words)Research Paper

Competitive Advantage

...Competitive Advantage Competitive advantage is that which an organization occupies in its own competitive arena. According to Collis and Hussey (2003), competitive advantage is realized when firm earnings are more than the expenses, at this point the firm is said to be achieving some economic rent. It is the economic rent that makes most competitors imitates other companies competitive advantage thus it becomes impossible for any given company to sustain its competitive advantages a longer duration of time. However, a company can have some positions, strategies and processes that are hard to be copied by other companies. In such a scenario the firm will be able to sustain its competitive advantage. This becomes a great advantage...
8 Pages(2000 words)Case Study

Generic Marketing Strategies and Competitive Market Positioning

...Running Head: MARKETING ONLINE BRAND TRUST Marketing Online Brand Trust [The [The of the Marketing Online Brand Trust Abstract This research explores generic marketing strategies and competitive market positioning in the context of the several online brand industry. The key research issue is the degree to which traditional planned concepts, like competitive market position and sustainable competitive advantage (SCA), are relevant in the latest world of e-marketing. The mainly significant subject that emerges from the study is that the tools and idea that are pertinent for offline firms are evenly applicable for online firms. Dissimilar generic strategies call for a diverse market position and this is borne out in this case study...
13 Pages(3250 words)Literature review

Growth Strategies to Achieve Competitive Advantage

...Growth strategies to achieve competitive advantage: A Case study of XYZ Power Utility pursuing growth objectives Table of Contents Abstract 2 Introduction 2 Literature Review 3 Proposed Methods 5 Reflections 7 Conclusion 8 References 9 Bibliography 10 11 Abstract Adopting growth strategies is one of the biggest challenges for any business organization irrespective of its nature. This paper is all about possible growth strategies for the XYZ power utility company which owned by the government company based in a developing state of southern Africa. There are various strategic models like McKinsey model, Ansoff model that could be followed by the company in the process of adopting growth strategy. The paper analyses all the possible models...
7 Pages(1750 words)Essay

Porter's Generic Competitive Strategies

... for Yellow Tail to effectively deal with this issue of maintaining its competitive advantage, it must adopt either one of the following strategies or both and these are: Cost advantage and differentiation. In order to survive in the long term, Porter (1985) has argued that a firm needs to have sustainable competitive advantages. There are two sources of competitive advantage namely; cost advantage and differentiation. Through his generic strategies, a ‘Cost Leadership’ is where a firm seeks to be low-cost producer in its industry whereas ‘Differentiation’ is when a firm seeks to be unique in its industry through features of its products that are highly valued. Porter argued that for a company to ensure long-term profitability, it needs...
8 Pages(2000 words)Case Study

Competitive Advantage

...Competitive advantage It is the desire of every company or organization to the on top of its game in all areas. This is better termed as competitive advantage and its entails a company having pool of dynamic skills, strengths and abilities that will propel it far above its competitors. In addition to being the very best in the industry, some companies find it more appropriate to differentiate their products and services from those of other companies (Pearce & Robinson, 2012). In an effort to create an edge in competitive advantage, it is advisable to factor in all areas such as cost, differentiation and speed (Pearce & Robinson, 2012). All these factors create competitive advantages for a company in different ways and need be looked...
1 Pages(250 words)Assignment

Competitive Advantage

...Barnes & Noble is the industry leader in the book industry. The company generated $7.13 billion in sales in (Barnesandnobleinc, . The organization holds various competitive advantages over a small bookstore. As a public company whose stocks are traded in the New York Stock Exchange Barnes & Noble has greater access to capital than small bookstores. The firm has the ability to raise capital through the sale of stocks and bonds. The company also has a superior marketing and advertising budget which has enabled Barnes & Noble the ability to build brand value. Barnes & Noble has the greatest product variety in the industry in both books and e-books. Due to the size of the company the firm is in a better position to offer lower prices... & Noble...
1 Pages(250 words)Assignment

Competitive Advantage Strategies

...Competitive Advantage Strategies Competitive Advantage Strategies Comments Gaining and maintaining leverage competition over other rivals can at times be a thorn in the flesh. It requires a well choreographed orchestrated strategy. These strategies seek to answer questions why customers should prefer a product or service from one firm to that of a rival or a competitor offering similar products or services. In the society today, business arena has become so dynamic. The climate of trends and advancement of technology have also played vital role in transforming business ecological niche. This compels companies to readjust according in order to conform to these changes (Pearce & Robinson, 2011). It is apparent that most companies have...
1 Pages(250 words)Essay

According to Porter (1985:12), if a firm is to attain a competitive advantage, it must make a choice about the type of competitive advantage it seeks to attain and the scope within which it will attain it. Critically discuss the three generic strategies u

...PORTER’S GENERIC STRATEGIES Porters Generic Strategy Introduction Michael Porter’s perception explained that, there are strictly three fundamental ways in which a firm should operate in order to achieve a sustainable competitive advantage considerably. These ways comprise of the cost leadership strategy, differentiation strategy and finally, focus strategy. In the overall generic strategy context, a firm pursues the strategic options and may be carefully considered (Eldring, 2009). Thus, it a requirement to re-examine the implications of the three generic strategies. Porter described a category scheme that consisted of three types of strategies commonly used in business setting to achieve and as well maintain competitive advantage. In his...
7 Pages(1750 words)Essay

Operations Strategies for Gaining Competitive Advantage

The whole corporation strategy is based on the principle of direct contact with customers. This contact is achieved by selling computer systems directly to the customers (direct business model). As of its performance objectives, the company is been focused on the retention of its current position in the market (Daroca et al, 1996) with a prospect of an extension of its area of influence through the application of direct business model (as analyzed above) as well as its entrance to new, standardized product categories, such as network servers, workstations, mobility products, printers and other electronic accessories [1]. Another characteristic of a corporation’s strategic options (regarding the performance objectives set whe...
10 Pages(2500 words)Assignment
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 Generic Strategies for Competitive Advantage for FREE!

Contact Us