Porters Generic Strategy - 1455 Words

Introduction It is clear that competing for sustainable and superior performance enhances a firm’s profitability. Equally, this same level of profitability depends largely on the attractiveness of the industry which is easily measured using the Porter’s 5 tools and more importantly, the position the firm takes within the industry to leverage on its strengths. To compete properly, a firm must address two fundamental questions. Should it 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†¦show more content†¦They are also involved in developing innovative operating systems and browser. Its main competitors are Microsoft, Samsung, HP, Blackberry, Acer, Toshiba, Nokia and Dell. Apple Inc. leads the competition by implementing a Differentiation Strategy. Apple Inc. sets itself apart from its competitors by providing unique features for its products, which the customers really cannot get anywhere else. These unique features include design, functionality, durability and consistency. Also, Apple electronic products are known to be sleek, simple and minimalist. It’s MacBook and iMac products have a reputation for long battery life and completely zero tolerance for viruses, which are known to plague other competitor’s products that run either Windows or Linus operating systems. Another aspect of differentiation that Apple utilizes well is its amazing customer service. Through its Apple Stores worldwide, Apple creates a very interactive forum where customers can come to purchase new devices or fix faulty ones. These unique aspects of its differentiation strategy are what give Apple the right to charge higher prices, thereby commanding a premium for their services. This strategy has proven to work well for the company because its market share has constantly been increasing since it released the iPod in 2005. The following diagram illustrates Apple inc’s strategic position relative to two of itsShow MoreRelatedPorter Generic Strategies and Samsung1237 Words   |  5 Pagesyears of activity. The semi-conductor industry in which Samsung participate is highly competitive and very dynamic. Thus, in order to analyze the case properly, we must know first the ropes of the industry, and afterwards dig in the company itself. Porter s 5 forces – Industry Analysis: 1. Threats of new entries: The main threat on Samsung is the growing Chinese market that enjoys a government support and attracts outside financing. Moreover, the Chinese are willing to endure loses for severalRead MoreThe Generic Strategy Options Of Porter2328 Words   |  10 PagesQ1. â€Å"The generic strategy options of Porter are insufficient and inappropriate for today’s complex, hyper-competitive environment†. Discuss. â€Å"Generic strategies† was first set out by Michael Porter in 1985 in his book â€Å"Competitive Advantage: Creating and Sustaining Superior Performance.† Academic work in the field of strategic management, Porter (1980, 1985) typology of general competitive strategies: cost leadership, differentiation and focus. The three virtually divided into two basicRead MoreEffective Porter s Generic Strategy Options1999 Words   |  8 PagesStrategy is used in different ways for varying purposes. From trying to start and finish projects to sports teams, political campaigns and even individual ambition, the concept of strategy is always essential. This essay examines the topic of if â€Å"The generic strategy options of Porter are insufficient and inappropriate for today’s complex, hyper-competitive environment†. However the purpose of this paper is to show how ineffective porter’s generic strategy options (model) are in the modern day environmentRe ad MoreThe Key Options Of Porter s Generic Strategies1907 Words   |  8 Pagesthree key options of Porter s generic strategies. Cost leadership, differentiation, and focus are the three generic strategies that will be deliberated on, and in addition the benefits and difficulties that come along with each strategic method. Michael E. Porter is a person of importance in regards to the competitiveness and economic development of nations and on competitive strategy. According to the Harvard Business School, â€Å"Michael Porter is the founder of the modern strategy field and one of theRead MoreMichael E. Porter Known as Generic Strategies704 Words   |  3 PagesINTRODUCTION Business level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. Generally there are various types of business strategies used by the company to compete more competitively. Business strategies used by a multinational of companies may vary from one subsidiary to another subsidiary. Managers should really get to know the internal and external business environmentRead MoreCase Study Of Porter s Generic Strategies And Its Later Development1857 Words   |  8 Pagesalso a challenge for each auto maker to create the right strategy for competing in global market. Volkswagen Group, the biggest German automaker, have target for being â€Å"the world’s most profitable, fascinating and automobile manufacturer in 2018†. To make it happen, they need to find the right strategy and positioning in international market among automobile manufacturers. The aim of this paper is to provide a review of porter’s generic strategies and its later development which will be used to analyseRead MoreThe use of Porter Generic strategies3051 Words   |  13 Pagesof Michael Porter’s Generic Strategies in the Romanian Hotel Industry Ovidiu N. Bordean, Anca I. Borza, RÄÆ'zvan L. Nistor and CÄÆ'tÄÆ'lina S. Mitra, Abstract— Porter’s generic strategies remain one of the most widely accepted typology of strategic options for businesses. Using a survey a sample of 69 hotel managers from the Nord-West part of Romania was questioned about their current strategic practices. A factor analysis revealed that hotels are pursuing only two strategies that can be identifiedRead MoreWhat Are The Three Generic Strategies Of An Organization1516 Words   |  7 Pagescovering most of the marketplace or if they choose, they can decide to concentrate on a narrower target within the market (Lynch 2003). While doing so may reduce their market range it essentially reduces their other competitors. Porter stated that there are three generic strategies that an organisation can follow to achieve competitive gain over other organisations. These are: 1) Cost Leadership 2) Differentiation 3) Focus Cost Leadership The organizations that endeavour to wind up the least cost makersRead MoreMichael Porter’s Generic Strategies1656 Words   |  7 PagesMichael Porter’s Generic Strategies According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation and focus. Porter calls these bases as generic strategies. Cost leadership emphasizes producing standardized products at a very low per unit cost for consumers who are price sensitive. Differentiation is a strategy aimed at producing products and services considered unique industry wide and directed at customers who areRead MorePorters Generic Strategies1412 Words   |  6 PagesPorter 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