Monday, October 28, 2013

What is 5 Generic Competitive Strategies?


Assalamu’laikum w.b.t.

In The Name of ALLAH, The Most Beneficent and Merciful

Peace and Blessings be Upon Prophet Muhammad s.a.w., His family and Friends

Welcome a new week for us, Alhamdulillah :D



For this week, we have learned about which one to employ for The Five Generic Competitive Strategies. The topic for this week is focused on Five Generic Competitive Strategies and their functions. What they are? Let’s me explain one by one.


THE FIVE GENERIC COMPETITIVE STRATEGIES




   First of all,  in employing a low-cost provider strategy, a company much does a better job than rivals of cost-effectively managing value chain activities and/or it must find innovative ways to eliminate or by-pass cost-producing activities. In other words, it’s striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers.

  Secondly, broad differentiation strategies seek to produce a competitive edge by incorporating attributes and features that set a company’s product/service offering apart from rivals in ways that buyers consider valuable and worth paying for.
  
 Focused Low-cost defined that concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members.

 Second last of 5 generic is focused differentiation. This is concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members.

    Last but not least is Best-Cost Provider. Best-cost provider strategies combine a strategic emphasis on low cost with a strategic emphasis on more that minimal quality, service, features, or performance. The aim is to create competitive advantage by giving buyers more value for the money. It’s include Giving customers more value for the money by offering upscale product attributes at a lower cost than rivals.






“Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value.”
-Michael E. Porter

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