Michael E. Porter Known as Generic Strategies

704 WordsFeb 16, 20183 Pages
INTRODUCTION Business level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. Generally there are various types of business strategies used by the company to compete more competitively. Business strategies used by a multinational of companies may vary from one subsidiary to another subsidiary. Managers should really get to know the internal and external business environment before deciding on the type of business strategy that will be used. Basic business strategies writers use the strategy will be developed by Michael E. Porter Known as Generic Strategies. Porter’s strategy divides into 3 main types of Cost Leadership, differences and focus (Porter, 1985). Each strategy has its own advantages and drawbacks .What must be emphasized is that managers ensure that their choice of strategy can help the company achieve its objectives, vision and mission set. Cost Leadership Strategy, is a capital oriented strategies, skills, cost savings, simple products created, produced components can be used for other products and profits generated is dependent on the ability to achieve economies of scale. Among the advantages of this strategy is able to return a profit in excess of the current average rate of profit, put the company in a more competitive position as tough competitors to compete on low prices (price war), rein pressure from cheaper price-conscious
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