Generic strategies model
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As a newly promoted vice president (VP), your chief executive officer (CEO) has invited you to participate in this year's upcoming strategic planning session. You know that this will be high-level type planning versus the more routine type planning you have done in the past. To prepare for this, you have done some research and noted the generic strategies model (cost leadership, differentiation, and focus) in a lot of the strategic-planning literature.
Using the Generic Strategies model, complete the following requirements:
â?¢Identify and describe 3 retail firms.
â?¢Note which of the 3 broad strategies that each firm seems to have chosen (low-cost producer, niche supplier, or differentiation strategy).
â?¢Identify at least 2 specific tactics that each of the three employ to support your opinion of their method of competing.
â?¢Do the tactics you cited seem to be working? On what evidence can you base your answer?
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Solution Summary
The responses addresses the queries posted in 881 words with references.
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The responses addresses the queries posted in 881 words with references.
//The paper will provide details about generic strategic model for three organizations, and tactics opted by these organizations for these generic strategies in order to be successful in the strong competitive environment.//
Introduction
There are three generic strategies of cost leadership, differentiation and focus for Porter's generic strategies. With the help of these generic strategies, companies can attain competitive advantage with the help of differentiating their products and services from that of competitors and by following low costs (Porter, 1998). Firms can target their products to customers by making a broad target, thus covering most of the market place, or they can also focus on a narrow target in the marketplace.
Retail firms
The three retail firms identified, which follow one of the three generic strategies of Porter, are: Tesco, Mercedes and Ferrari. Tesco follows the cost-leadership strategy, McDonalds follows the differentiation strategy and Rolls Royce follows the niche strategy.
Tesco is a general merchandising retailer firm of UK. The company has a retail chain all over the world that deals in both food and non-food items. However, the company has lower share in food items in comparison to non-food items. The company follows the cost-leadership strategy and it is one of the largest retail chains in general merchandizing all over the world (About Tesco, 2011).
The next company identified, which follows the differentiation strategy, is McDonalds. In differentiation strategy, the company charges premium prices for its product or services in the market. The company can be differentiated by better service, better ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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