The Discipline of Market Leaders Customer Value Model

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The Discipline of Market Leaders Customer Value Model (Porter’s generic strategies with particular reference to Apple Inc) Table of contents Introduction…………………………………………………………………………………………………. Porter’s three Generic Competitive Strategies…………………………………………………………. Cost Leadership…………………………………………………………………………………………… Differentiation………………………………………………………………………………………………. Focus or Niche strategy…………………………………………………………………………………... Apple Inc……………………………………………………………………………………………………. Identification and Critical Evaluation of the Company’s Existing Strategies………………………… Apple Inc Cost leadership Strategy……………………………………………………………………… Apple Inc Differentiation…show more content…
The third strategy, focus is when a firm chooses a narrow segment within its industry and tailors its offerings (strategy) to that segment (Porter, 1980). Focus strategies involve achieving cost leadership or differentiation within niche markets in ways that are not available to more broadly-focused players. Finally, Porter labels firms that follow each generic strategy, but do not achieve any of them as "stuck in the middle". Porter asserted that the three strategies were distinct mutually exclusive alternatives. He argued that firms may be able to successfully pursue more than one of these strategies simultaneously, but "this is rarely possible." (Porter, 1980: 35). A firm which failed to follow one of the strategies was "stuck in the middle," which guaranteed the firm low profitability. This objective of this paper is to thoroughly explain the three generic competitive strategies as presented by porter. The paper further analyses the competitive strategy of apple Inc and the application of porter’s generic competitive strategy before drawing vital conclusions on the subject. 2.0 Porter’s three Generic Competitive Strategies Generic strategies were used initially in the early 1980s, and seem to be even more popular today. They outline the three main strategic options open to organization that wish to achieve a sustainable competitive advantage. Each of the three
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