Business Strategy : Marketing Management

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Business Strategy Differentiation La Troy King Information Systems Management Dr. Patricia Riley December 21, 2015 La Troy King Dr. Patricia Riley Information Systems Management 12-21-2015 Review of Literature According to Kroenke (2015), Porter believed firms always engage in one of his four strategies. An organization can focus on being the cost leader, or it can focus on differentiating its products or services from those of the competition. Further, the organization can employ the cost or differentiation strategy across an industry or it can focus its strategy on a particular industry segment Kroenke (2015). Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized service in a niche market). He then subdivided the Focus strategy into two parts: "Cost Focus" and "Differentiation Focus." While researching online and throughout the reading it was very evident that it is important to remember that Cost Leadership is about minimizing the cost to the organization of delivering products and services Porter (1985). The cost or price paid by the customer is a separate issue! For me understanding that the Cost Leadership strategy revolves around being the leader in relations to the cost in the industry or market in which our society thrives on daily. Over the years many companies have come to the realization that just being amongst the
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