¶ … organization specific approaches listed [Differentiation, Cost Leadership, and Response] (Figure 2.4 pages 38). Support position references specific actions, policies, events demonstrate opinion makes sense.
Porter generic strategies: Cost leadership, differentiation, response
Cost leadership
The organization that has most famously deployed a cost leadership approach to pricing is Wal-Mart. Wal-Mart's slogan is that it offers the lowest prices all of the time. Although some stores may occasionally offer deeper discounts on specific products, in general Wal-Mart offers the most consistently low prices of any 'big box' retailer. It does not necessarily offer the highest quality or even the greatest selection, but it is almost always the cheapest, compared with its major competitors. It is a large, general retailer and although its primary demographic may be lower-income customers, many consumers with a variety of retail needs shop at Wal-Mart based on price.
Differentiation
Wal-Mart is able to pursue a cost leadership...
The benefits of high-quality relationships come from relational resources (Wright, et al. 2005) they create. Such resources include durable obligations (e.g., arising from feelings of gratitude, respect, and friendship), network contacts and connections (including privileged access to information and opportunities, social status, and reputation of influential others), and the ability to have open information exchanges with those around them (Valle & Halling, 1989). Relationships that do not develop so well are
furnishes a literature review of five strategic management viewpoints, that include Porter's (1980) Generic Strategies, Porter's (1980) Five Forces, Porter's (1985) Value Chain Analysis and Bowman and Faulkner's (1997) Bowman's Strategy Clock. This paper has made use of UK's Tesco supermarket retailer for case study. The analysis of Tesco using Porter's Generic strategies revealed that Tesco's generic strategy needs to be cost leadership given that they can successfully differentiate
Organization Management The Walt Disney The Walt Disney Company The Walt Disney Company An organization is any social entity that has a well-designed structure to coordinate its functions, and the organization has to have a specific goal. Most organizations hardly work internally alone, but rather involve the external environments. Some organizations are profit oriented, like the business organizations, while others are non-profit making (Daft et al. 2010). In this context, a contemporary focus is
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Low Cost Differentiation Preemptive Strength Brand identity Differentiate from other low cost providers to increase volume Brand identity commands a premium price, increasing margin Brand identity becomes identifiable with a specific niche Build brand identity quickly to reduce the threat of new entrants Weakness Lack of diversification Diversify into many products to promote volume sales Brand extensions Diversification is not part of this strategy. Diversification is key to opening new market opportunities. Opportunity Geographic expansion Increase volume Increase volume Increase volume Increase opportunities Threat High substitutability Inherent in the strategy -- low cost
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