Essay on "3 Generic Strategies 5 Forces Model Distinctive Competencies"
Essay 5 pages (1431 words) Sources: 1
[EXCERPT] . . . .
Business StrategiesWhy is a business' choice of generic strategy so important to its long-term success?
The selection of a generic strategy is critical to the success of any business, because it defines how its core competencies or strengths can be best used to enter and grow sales into a given type of market. The three generic strategies of cost leadership, differentiation and focus guide businesses to the best intersection of their innate strengths or core competencies, and the best possible market for them to profitably operate in. In essence, the three generic strategies are essential for aligning businesses to the business models that will also fuel long-term growth (Ormanidhi, Stringa, 2008).
The generic strategies also are very effective in assessing the competitive strengths of a business in total, taking into account product, process- and people-based unique competitive strengths and defining the best market scope for them to compete in (Ormanidhi, Stringa, 2008). All businesses have varying strengths in the product-related, process-based and people-based areas of their businesses. Taking these three areas and overlaying them into a Venn diagram would show a different percentage overlap depending on the unique strengths of a business. The generic strategies are very effective for taking the intersection of these three factors (product, process, and people) and positioning them in markets that have the greatest potential for success.
An example of this is Nike, who has an exceptionally effective supply chain, well-defined outsourced production processes m strong channel sales systems, and a stable, committed workforce. Th
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The three generic strategies clarify how the unique combination of business strengths or core competencies can best align to current and future market opportunities. As many businesses seek to add to and grow their core competencies over time, their ability to compete in one generic strategy vs. another will also change over time. This shifting of generic strategies can be very difficult to achieve, yet is essential for their survival. Consider how Southwest Airlines began in a cost leadership generic strategy and today is moving more towards a differentiation strategy by concentrating on customer service, $5 WiFi on all planes by 2012, and changing the airline passengers' customer experience. This shift from being purely price-driven in the past to concentrating on service and on-time performance today has made Southwest the airline of choice for many small businesses who have tight travel budgets but also want to have decent service on their flights.
In conclusion, the generic strategies are critical for aligning a company's unique strengths or core competencies to a continually changing market landscape. The best businesses sense the shifts in market requirements and work very hard to add new strengths so they can continue to be successful in one of the three generic strategy areas.
2. This semester we discussed Porter's 5-Forces model to analyzing the external environment. Offer a suggestion or two to improve the model and explain how your ideas would make it better.
The Five Forces Model is effective as a strategic planning framework to capture the threats of new entrants and substitute products or services, in addition to the bargaining power of suppliers and buyers. Dr. Porter revised the assumptions of the Five Forces Model in 2008 with an updated article published in the Harvard Business Review… READ MORE
Quoted Instructions for "3 Generic Strategies 5 Forces Model Distinctive Competencies" Assignment:
I need your *****s to work their magic and give fantastic answers to the following three questions. Writing that displays unique insights, strategic thinking, and clear, concise answers that are supported are a huge plus.
From the assignment:
Business-Level Strategy
Please answer the following 3 questions as fully as possible, providing reasons for your position and supporting evidence/examples.
1. Why is a business***** choice of generic strategy so important to its long-term success?
********, in class the generic strategies were discussed as cost-leadership, differentiation, and focus (niche).
2. This semester we discussed Porter*****'s 5-Forces model to analyzing the external environment. Offer a suggestion or two to improve the model and explain how your ideas would make it better.
********, our professor gave the following as the 5 forces: 1. Rivalry among competitors. 2. Threat of new entrants. 3. Threat of substitutes. 4. Bargaining power of buyers (customers). 5. Bargaining power of suppliers. We were also given the following suggestions when answering this question: 1. You may come up with a complication with the current model. 2. You may add an additional force if you like. 3. Is there something is there something that is too simplified? If so, what needs to be tweaked?
3. How can a business best leverage its distinctive competencies into competitive advantage?
********, in class we were given the definition of distinctive competencies (which by the way is very similar to core competences) as business resources and capabilities that are the source of competitive advantage. It is something that is Valuable, Rare, Inimitable, and Non-Substitutable. If all 4 of these are not met, it is not a distinctive competency. We also discussed that distinctive competencies are rarely physical assets and that the goal is ultimately a long-term, sustainable advantage.
Many thanks! You always do a great job! *****
How to Reference "3 Generic Strategies 5 Forces Model Distinctive Competencies" Essay in a Bibliography
“3 Generic Strategies 5 Forces Model Distinctive Competencies.” A1-TermPaper.com, 2010, https://www.a1-termpaper.com/topics/essay/business-strategies/142078. Accessed 27 Sep 2024.
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