DA 5-Generic Strategies PDF

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In this question, you will consider the four main generic strategies. Select one of them (cost leadership, differentiation, focused cost leadership, or focused differentiation) and describe its major components. Is it sufficient to just use a generic strategy for a firm? Why or why not?...

Description

In this question, you will consider the four main generic strategies. Select one of them (cost leadership, differentiation, focused cost leadership, or focused differentiation) and describe its major components. Is it sufficient to just use a generic strategy for a firm? Why or why not? Generic Strategies According to Porter, there are four strategies that can be used to manage the behavior of a company and classify its behavior so it can have a better competitive advantage. These strategies are cost leadership strategy, differentiation strategy, cost focus strategy and differentiation focus strategy (Lucidity, n.d.). For this assignment my focus will on differentiation strategy. Differentiation Strategy Indeed (2021) postulates that “A differentiation strategy is an approach business develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace”. The main purpose of this strategy is a company to increase its competitive advantage. This advantage is achieved by understanding the company’s strength & weakness, its customer’s needs & wants, and the value it can provide. In differentiation strategy its main focus is differentiating the product or service being provided when compared to its competitions. In this strategy it is necessary to understand the company’s product or service portfolio as well competitor’s portfolio. In addition, customer feedback, resources & innovations, cost or resource and possible opportunities for the company (Lucidity, n.d.). When companies apply the differentiation strategy, they will the opportunity to enter new markets, increase revenue streams, introducing marketing channels with new features, and increase customer loyalty by satisfying them with their needs (Lucidity, n.d.). Business achievement is dependent on the ability of a brand to distinguish itself as an exceptional product or service provider. In order to create a truly effective differentiation strategy, two key elements must be taken into account: business-focused differentiation and marketing differentiation. By increasing visibility, and attracting and retaining a larger consumer base, both elements help a business to prosper. Is it sufficient to just use a generic strategy for a firm? There are different strategies for different business under the generic strategies. This helps organizations to utilize what applicable for their business. I do believe it is sufficient enough to use a proper generic strategy to identify its competitive advantage within the market. However, it should be noted a deep analysis using the SWOT and based on the result a generic strategy can be set that aligns with the

organizations goals, and objectives. We see that Apple has become a global company by applying the differentiation strategy which helped acquire a significant number of customers across the world. Reference

Indeed. (2021, February 8). Differentiation Strategy: Definition, Benefits and Creation. Indeed Career Guide. https://www.indeed.com/career-advice/career-development/differentiationstrategy Lucidity. (n.d.). Introduction to Porter’s Generic Strategies. https://getlucidity.com/strategyresources/introduction-to-porters-generic-strategies/...