Porter’s generic business strategies
A business-level strategy is an integrated and coordinated set of commitments and actions the firms uses to gain a competitive advantage by exploiting core competencies in specific product markets (Volberda, et al., 2011). American academic Michael Porter outlines five business-level strategies that firms can choose from in order to establish and defend their desired strategic position against competitors namely, cost leadership, differentiation, focused cost leadership, focused differentiation and integrated cost leadership/differentiation. Each strategy helps a firm to establish a competitive advantage in order to set itself apart from competitors within a particular competitive market. When selecting …show more content…
In this strategy efficient processes are critical for success.
Differentiation strategy: This strategy produces products or services at an acceptable cost and in a way that differentiates how products or services are perceived by a targeted group of customers. In this strategy product innovation and customer value are critical for success.
Focused cost leadership strategy: This strategy uses low cost as the basis for producing products or services to a particular industry or niche segment. Firms using this strategy intend to serve the identified segment better than competitors serving a broader customer …show more content…
Dubbed as the next consumer hot spot, SSA is experiencing the second-fastest economic growth in the world, only to be one step behind Asia-Pacific (Admin, 2016). SSA could be the next big growth region due to its high birth rates and a rising middle class. However, consumers in growing economies are becoming more selective when choosing products as they have become more enlightened about market offerings and the bargaining power of buyers. Consumers are now looking more for good quality products that will come at a lower cost. An integrated cost leadership/differentiation strategy will allow Titanium Man to focus on efficient production methods while also focusing on unique value features to offer to consumers. East Africa alone is home to over 350 million people, where consumer spending is expected to grow to $150 billion in 2020. The market leaders – South Africa and Nigeria – will be followed by five key frontier markets: Kenya, Ethiopia, Tanzania, Ghana and Cameroon (Admin, 2016).In SSA gender differentiation is also a key factor to consider as male income continues to outpace female counterparts’ earnings trajectory, which presents opportunities in the sector of men’s grooming products (Admin, 2016). Developing nations therefore provide opportunities for economic diversification and growth as well as trade exposure in the quest to gain first world
A business-level strategy is an integrated and coordinated set of commitments and actions the firms uses to gain a competitive advantage by exploiting core competencies in specific product markets (Volberda, et al., 2011). American academic Michael Porter outlines five business-level strategies that firms can choose from in order to establish and defend their desired strategic position against competitors namely, cost leadership, differentiation, focused cost leadership, focused differentiation and integrated cost leadership/differentiation. Each strategy helps a firm to establish a competitive advantage in order to set itself apart from competitors within a particular competitive market. When selecting …show more content…
In this strategy efficient processes are critical for success.
Differentiation strategy: This strategy produces products or services at an acceptable cost and in a way that differentiates how products or services are perceived by a targeted group of customers. In this strategy product innovation and customer value are critical for success.
Focused cost leadership strategy: This strategy uses low cost as the basis for producing products or services to a particular industry or niche segment. Firms using this strategy intend to serve the identified segment better than competitors serving a broader customer …show more content…
Dubbed as the next consumer hot spot, SSA is experiencing the second-fastest economic growth in the world, only to be one step behind Asia-Pacific (Admin, 2016). SSA could be the next big growth region due to its high birth rates and a rising middle class. However, consumers in growing economies are becoming more selective when choosing products as they have become more enlightened about market offerings and the bargaining power of buyers. Consumers are now looking more for good quality products that will come at a lower cost. An integrated cost leadership/differentiation strategy will allow Titanium Man to focus on efficient production methods while also focusing on unique value features to offer to consumers. East Africa alone is home to over 350 million people, where consumer spending is expected to grow to $150 billion in 2020. The market leaders – South Africa and Nigeria – will be followed by five key frontier markets: Kenya, Ethiopia, Tanzania, Ghana and Cameroon (Admin, 2016).In SSA gender differentiation is also a key factor to consider as male income continues to outpace female counterparts’ earnings trajectory, which presents opportunities in the sector of men’s grooming products (Admin, 2016). Developing nations therefore provide opportunities for economic diversification and growth as well as trade exposure in the quest to gain first world