Competitive And Cooperative Strategies For Corporations

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Understanding the competitive and cooperative strategies available to corporations is an important concept discussed in this chapter. One desired outcome of analyzing strategic factors is identifying a niche where an organization can use its core competencies to take advantage of a particular market opportunity. A niche is a need in the marketplace that is currently unsatisfied. The goal is to find a propitious niche (an extremely favorable niche) which is so well suited to the firm’s internal and external environment that other corporations are not likely to challenge or dislodge it. Businesses that understand the power of specialization are thriving. Blackbaud is company that got rich in their niche. Businesses have many different options when it comes to accounting software. MYOB, QuickBooks, Freshbooks and Sage are all successful companies in that market. It is difficult to stand out among all this competition. But Blackbaud has achieved that with an average revenue growth rate exceeding 15% over the last 10 years. They achieved it by focusing on one group of customers with unique needs, nonprofit organizations. Competitive strategies are also very important for the survival of a firm. Michael Porter proposes three “generic” competitive strategies for outperforming other corporations in a particular industry, those are overall cost leadership, differentiation, and focus. These strategies are generic because they can be pursued by any type or size of business firm, even
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