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With a higher value, consumers will most likely be ready to pay an extra price, giving the firm a competitive advantage over other firms. Porter also identified the focus strategy whereby a firm concentrates on a particular segment in the market whereby it may have an advantage in regard to the cost or differentiation of products (Porter, 1998). This paper presents the application of Porter’s generic strategies in GlaxoSmithKline, which is a pharmaceutical company offering a variety of products for treatment of various diseases. Differentiation strategy is highlighted as the mostly commonly used strategy, although the organization uses the cost leadership strategy.
The differentiation and cost leadership strategies are applied by the organization to maintain its competitiveness. The organization is usually involved in market research to ensure that it satisfies a wide range of consumers with various illnesses such as; asthma, diabetes, cancer and heart problems among many other pharmaceutical products that are essential for severe ailments. The firm also produces vaccines that are essential for protecting healthy people from severe diseases such as hepatitis and tetanus among others. Consumers are also provided with healthcare products that they can readily access from the shops for their day to day uses. These include painkillers such as panadol and hygienic products such as aquafresh tooth paste. Lucozade is also an energy drink that is used globally (Chandon, 2004).
The differentiation strategy of GlaxoSmithKline significantly helps in maintaining profitability in the highly competitive pharmaceutical industry. The firm’s products are of unique quality and consumers attach a high value to them. This is mainly as a result of the perception that the firm possesses the capacity of offering most of the highly needed pharmaceutical products. The highly
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Introduction 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.
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 leadership approach in Toyota.
1999, p. 5). According to Johnson et al. strategy is "the direction and scope", "over the long term", and, which "achieves advantage for the organisation through its configuration of resources within changing environment and to fulfil stakeholder expectations." (Johnson et al.
It will seek, ultimately, to understand company roles as they change in response to shifting market conditions. The following areas will be discussed:
The need for a study of this type is clear. It is currently popular for managers and consultants to focus on Porter's Five forces for analyzing existing industry conditions, with some rounding out their analysis using standard models such as the Generic Strategy and the ubiquitous SWOT.
However, the writer finds numerous flaws in the research owing to external interference (Zimbardo, 2006). In addition, the article reviews the Stanford experiment, which was spontaneous. The applicants were volunteers
The author states that Total Quality Management is a wide management perspective that deals with processes and attitudes. It emphasizes quality as a major objective in a manufacturing environment as opposed to traditional mode of maximizing production. It is worth noting that quality in production not only applies to manufacturing environment.
Most men did not expose their ladies to this fashion magazine at its inception. This magazine highly influenced the spread of ready to wear clothing by accepting to advertising the clothes. The forces of fashion industry in America were fashion journalism, ready to wear