Generic Strategies
Porter's generic strategies began life as a matrix grid featuring low cost and differentiation strategies, which could either be mass market or niche in nature (QuickMBA, 2010). A fifth strategy, hybrid, has been hypothesized by some, noting that there are instances where a firm could be argued to practice some combination of differentiation and low cost.
The Swatch Watch has a differentiated strategy. While not a high end watch, it does have a strong brand, with a unique brand proposition.
The McDonalds Value Meal is essentially a hybrid. All McDonalds product is low cost by the definition of its industry, and the value meal accents the low cost element. However, McDonalds has a high level of differentiation within its industry. It has a healthy 20% net margin, which indicates that it does not follow a true cost leadership strategy -- it could cut prices quite a bit more than it does. Still, the company emphasizes efficiency and cost control, and does have products like the Value Meal that compete heavily on cost leadership.
Starbucks operates with a differentiation strategy, pricing above its competitors and positioning its products are premium within that framework.
Subaru is a differentiated provider. The company's cars are positioned in the middle range, not the cheapest in the industry, but of fair quality. Brand and quality differentiation are weak -- it is not executing well -- but this is their strategy. Branding tends to be focused on lifestyle, which is another hallmark of many differentiated producers (Nudd, 2013).
University of Phoenix online degrees offer a differentiated product. The school markets itself on a number of bases, including its convenience and customer service. These are traits normally associated with a differentiated product. UofPhoenix uses non-traditional approaches because it seeks a non-traditional student body. The school would be niche in that respect but it has one of the highest enrollments...
Strategy Michael Porter described four types of generic strategies, a matrix with cost leadership and differentiation on one axis, and broad market/niche along the other. The underlying logic is that companies either must undercut their competitors (cost leadership) or they must differentiate themselves in a way that is meaningful to the consumer, that would compel the consumer to pay a premium for their goods/services. (QuickMBA, 2010). The broad market differentiation
Strategy Concepts -- From Planning Through Analysis and Implementation The Concept of Strategy Strategy is about change and response to change. Competitive strategy cannot stand still (Eisenhardt, 2002). Competitive strategy must establish differentiation (Kim & Mauborgne, 2004). Strategy appears most difficult from the inside of a business as perspective taking is based on what the competition is doing, might do, might do in response to what other businesses do, and so forth
Blue Nile Porter's five forces analysis focuses on the factors that influence a firm's ability to earn a profit: the bargaining power of buyers, the bargaining power of suppliers, the threat of substitutes, the threat of new entrants and the intensity of rivalry within the industry. The online jewelry business, and Blue Nile in particular, has only a moderately favorable business environment. The company is relatively small in the jewelry business
Business Transformation Strategy GE Capital Woodchester is a leading provider of motor car, equipment, and personal finance in the country of Ireland. They offer the most flexible packages for diverse financial needs and as such, have earned the position of leading the personal and capitol acquisition financial services. GE Capital Woodchester also provides specialized financing and services and they focus on niches including equipment and car leasing, hire purchase and loans
Apple has a very strong brand name that is helping it to build share for the iPhone, but the product is expensive. It is believed that there is considerable room for a competitor to target the student market with a lower-priced but also feature-rich device. The mainstream player in this market is the humble cell phone. Popular phones such as the Motorola Razr have camera functions, and new phones are
For the first 2010/2011 fiscal quarter ending Aug 31, FedEx Freight generated revenue of $1.26 billion, up 28% from last year's $982 million, but made a loss of $16 million -- down from an income of $2 million a year ago (2010, FedEx). FedEx Corp. reported gross revenue of $9.46 billion in the quarter, up 18% from $8.01 billion the previous year; operating income of $628 million, a 99% increase from
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