Analysis Of Porter 's Generic Competitive Strategy

The design should be utmost unique and further differentiated, not conforming to culture. Design is could be one competitive advantage so it is important that the manufacturing of the products are conformed to the original ideas of the maker, uninfluenced by any other factors involved in its manufacturing process. Example of this idea is the use of differentiation strategy of companies to gain competitive advantage.

Our team decided to choose the “Broad Differentiation” strategy as the basic strategy for our company. We will attempt to differentiate our product line in several distinct dimensions. By providing products that are vastly superior and unique from our competitors and pricing the products with an affordable price, we can gain something that is beneficial for the company in the future, which is customers’ loyalty and awareness. We may change or modify our strategy for the next round depending how it performs against our competitors.

maintain the same or a comparable profit margin on such items as they do their non organic

These foods are grown using fertilizers, herbicides and pesticide use, and may or may not be a genetically altered plant that grows at a rate many times that of a regular plant. The potato is one such example. Because of the fast growing rates and high crop yield due to the use of pesticides and other unnatural components, this allows the firm to sell the plant at low costs to maximize on their marginal cost (the benefit of producing or selling one more unit of output). If a firm in a completely fair competitive market desires to make money, they will sell more units at a lower cost, so long as the number of units doesn't incur a negative marginal cost.

Differentiation approach refers to the organizations unique designing creations. These approaches appeal to the customers who prefer upscale and exquisite specialty products or services. These include

With the demand for natural and organic food far exceeded the supply, many traditional stores also enter this market, such as Wal-Mart. However, the quality has been decreased due to the constantly importing the natural and organic food from other countries and the non-natural and organic product. Thus, the truly organic product in US is quite strict. The organic products must have the “USDA Organic” label and at least with 95% of the ingredients organic. In addition, the third-party organic certifier -USDA should certify the each stores, which sell the organic products, complying with the strict federal regulation.

It has been held in the United Brands case that product differentiation acts as a barrier to entry. Product differentiation is the development or incorporation of properties such as pricing, style etc. that the intended buyers of a product perceive to be different from others and therefore desirable. In the instant case the product differentiation has been made by different annual fee for licence of patented product.

Residual Efficiency High managerial effectiveness, strong organizational culture, motivated workforce committed to the low cost strategy. Product Design However, shades of grey in the distinction between differentiation and cost-leadership (Bowman, 2008); neither are mutually exclusive (Parnell, 1997). Most successful firms exhibit one or more forms of differentiation, along with forms that are directly associated with cost-leadership (Spanos, Zaralis, & Lioukas, 2004). Such firms are said to be following a combined or . ALDI fits this description because it actually improves the quality stakes and keeps the prices down (Osgeowitsch & Goelz, 2011) and thus is offering superior goods relative to competitors in some cases5. ALDI cost-leadership strategy; by extending its thinking to the . ALDI strives not only value its customers expect and by providing this more effectively than competitors, it strengthens its strategic position in the marketplace value-forsense can act as a form of differentiation. Despite the observation that ALDI -leadership strategy could represent a version of for low cost but also focuses on providing value-oriented customers with products that are offerings. An emphasis on cost-leadership in this

The threat of new entrants refers to the threat posed by new competitors within an industry. If it is easy for new firms to enter the industry barriers to entry are low and the threat of new entrants is high. A profitable industry attracts more competitors. Economies of scale, learning curve effects and other macro factors impact the nature of an industry 's

Eating organic is not always helpful to one’s budget; the supply of organic food is more limited than the demand. Handling the food results in higher costs because of the mandatory separation of organic and conventional products, and selling and dispersing the organic food throughout the country can also result in higher costs because it’s rather inefficient and the volumes are smaller (FAO: Food and Agriculture Organization).

Differentiation can be achieved in a variety of ways: unusual features, responsive customer service, rapid product innovations, technological leadership, perceived prestige and status, appeal to different tastes, and engineering design and performance. Methods of controlling costs, however, may be limited. The ability to price differentiated products competitively will be important for reducing upward pressure on customer prices so that they do not exceed the level customers are willing to

There is no exact definition for Strategy because it is defined in different ways as some people think that make a plan to get success in future is a strategy while others think that future is hard to predict. Exceptionally, some Japanese companies have no strategies though these companies have a good cost and continuous improvement. The definition for strategy is to explain the direction and scope of any company for the long term to achieve advantage for the company or to fulfill the needs and expectations. Strategy is different from Operational effectiveness and they work in different manner in the companies. Michael Porter, who is a professor at Harvard Business School and a strategy expert, says that it should determine how organizational resources and skills should create advantage. Accordingly, Strategy can also be defined as an organizational change during actions in the organizations for better and advantageous results or to determine how we win and get success in the future period. It is a needful developed plan with respect to market to compete the world. Organizations should be responsible for competitive changes according to the market. It is the main goal for any Organizations. Business/IT strategy is very important to know the success rate of your business. Apart from Business Strategy, the other two main types of strategy are Corporate Strategy and Team Strategy. These strategies give competitive advantage of cost leadership, differentiation and focus. The

Fast, user-friendly online reservation system by facilitating e-ticketing and reducing staffing requirements at telephone reservation centers and airport counters. (Kuzmicki, 2009)

Option 2: maintain the present price, be content with the current market share, and use the lower-cost edge to earn higher profit margin on each unit sold 4. Concept & Connections 5.1, How Wal-Mart Managed Its Value Chain to Achieve a Huge Low-Cost advantage over Rival Supermarket Chains, describes Wal-Mart’s strategy for out-managing its rivals in efficiently performing various value chain activities to gain a lowcost leadership. A. Achieving Low-Cost Advantage 1. A low cost edge over rivals is best accomplished in two ways: a. performing essential value chain activities more cost-effectively than rivals, and

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.