AC 3.2: Plan how to use marketing strategy options in a market Strategic marketing planning is the process that the operational and managerial staff of a company goes through to create and implement effective marketing strategies. Strategic marketing planning takes several aspects of company marketing and promotion into consideration. Porter's generic strategies describe how a company pursues competitive advantage across its chosen market scope. There are three/four generic strategies, either lower cost, differentiated, or focus. A company chooses to pursue one of two types of competitive advantage, either via lower costs than its competition or by differentiating itself along dimensions valued by customers to command a higher price. A company
Click here to unlock this and over one million essaysGet Access
Porter's generic strategies framework constitutes a major contribution to the development of the strategic management literature. Generic strategies were first presented in two books by Professor Michael Porter of the Harvard Business School (Porter, 1980, 1985). Porter (1980, 1985) suggested that some of the most basic choices faced by companies are essentially the scope of the markets that the company would serve and how the company would compete in the selected markets. Competitive strategies focus on ways in which a company can achieve the most advantageous position that it possibly can in its industry (Pearson, 1999). The profit of a company is essentially the difference between its revenues and costs. Therefore high
* Management must develop a strategic management plan. The purpose of the strategic marketing plan is to fit between the organization’s objectives and resources and its changing market opportunities so it is beneficial for
* Management must develop a strategic management plan. The purpose of the strategic marketing plan is to fit between the organization’s objectives and resources and its changing market opportunities so it is beneficial for the company.
“Generic strategies” was first set out by Michael Porter in 1985 in his book “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 basic categories. Focus strategy requires a niche or narrow segment concentration. But Porter said, can cost leadership in the success of this strategy or differentiation to achieve. Therefore, cost leadership and differentiation are two basic strategies Porter 's typology. These two topics are discussed in this article.
Strategic planning is an integral process of an organization defining its strategies and direction and making decisions to allocate available resources to peruse laid strategies, which provides the organizations which a competitive edge over their competitors.
Porters Generic Competitive Strategies: The relative position of a company within its industry concludes whether the profitability of the firm is above or below the industry’s average. The above average profitability of the firm is fundamentally showing the sustainable competitive advantage in its long run. According to Michael Porter, competitive advantages originate from the value of a firm and there are two types of competitive advantages, which a company can own. These are low cost or differentiation. For any company, in
Porter’s generic strategies defines how companies achieve competitive advantage in the market by choosing a strategy to target its market. From the financial information given in Question 3, it can be deduced that Whole Foods sells its products at a premium price, whereas the other three supermarkets sell theirs at a low or lower price to be able to capture the market.
Strategic planning is a necessary process to ensure an organization understands its future, and emerging operational environment and issues. Strategic planning also develops measurable plans, processes, and procedures to prepare for that environment and the future.
Strategic Planning is the process of developing and maintaining a strategic fit between the organizations goals and capabilities as well as emerging market conditions and opportunities. This process begins with a clear company mission statement. However, this is only a small piece of a dynamic and perpetual process. Other activities involved with strategic planning also include setting supporting organizational objectives, designing a sound product mix as well as coordinating functional strategies. Strategic planning works to set the groundwork for the rest of the subsidiary planning functions in the company.
Strategic planning is the process of gathering information from stakeholders, market players, professional entity, and government agency. The purpose of gathering information is formulating a realistic and a workable framework that any organization can implement and work with. Evaluation of information is a key aspect in determine the kind of plans that the organization wish to a chive over certain a period. Strategic planning ensures the implementation is, crafted well, and parties involved be acquitted with it. Developing a good Strategic plan helps a company to implement its missions and visions effectively, and helps the company to evaluate
Porter’s generic strategies describe how a company attains competitive advantage across its chosen market scope. There are three generic strategies-cost leadership, differentiation and
Strategic Planning is the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities.
Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals,
The generic strategy allows the firm to react to the five forces better than their competitors (Worthington & Britton, 2006). According to Porter (1985), an organization can enjoy competitive advantage by focusing on the generic competitive strategies. The organization could enjoy competitive edge by either offering the product at low cost or differentiating the product from the competitors or by focusing on a specific market. Porter (1985) emphasized that the generic strategies should be at the centre of the strategic plans.