Identify Porter’s four generic strategies. Discuss which of these would work best for Electrolux.
According to Collins (2010), Porter developed five generic strategies by which businesses could select from and implement to best achieve a competitive advantage in any given marketplace (as cited by Porter, 1980). Focusing on either a narrow or broad market segment, Collins (2010) notes that Porter’s five strategies fall under the classifications of focus, cost leadership and differentiation (as cited by Porter, 1980). The focus strategy directs a firm’s resources against a small number of specific niche target markets (Collins, 2010, p. 309). In doing so, a business can effectively situate itself to increase both its customer satisfaction as …show more content…
According to Collins (2010), this would be considered an integrated strategy (p. 310). This type of strategy mixes the best qualities of the two allows a company to distinguish itself as an innovative business who can provide customized products that are highlighted by differentiated services (i.e. brand offerings, competitive pricing and a wide-ranging inventory) (Collins, 2010, p. 310). This assessment is supported by the fact that according to Electrolux’s corporate strategy, the company intends to provide its customers with the best-in-class consumer experience prior to, during and following the purchase of an Electrolux product (Business Model for Best-in-Class, n.d.). Additionally, the company aims to achieve a competitive cost structure by minimizing the cost of products and the effective/reduced use of its resources (Business Model for Best-in-Class, n.d.). Lastly, Electrolux acknowledges the digital environment and how it impacts consumer behavior, continues to improve upon its core competencies and focuses on sustainability (Business Model for Best-in-Class, n.d.). Thus, analysis of Electrolux’s corporate strategy indicates the company currently employs an integrated strategy that best suits the organization and will likely continue to result in the achievement of the firm’s business …show more content…
(2012, October 13). How U.S. business can win against China. Retrieved March 21, 2018, from https://www.washingtonpost.com/business/how-us-business-can-win-against-china/2012/10/12/7d773e80-0f3b-11e2-bd1a-b868e65d57eb_story.html
Employees by country, (n.d.). Retrieved March 23, 2018, from http://www.electroluxgroup.com/en/employees-by-country-994/ References
Get to Know Us | Electrolux Careers - Electrolux Group. (n.d.). Retrieved March 23, 2018, from http://career.electroluxgroup.com/get-to-know-us/
Market Development (n.d.). Retrieved March 23, 2018, from http://www.electroluxgroup.com/en/market-development-240/
Oncioiu, I., Stanciu, A., Boteanu, C., & Bîlcan, F. (2017). Relationship between corporate culture and organizational performance. Electrotehnica, Electronica, Automatica, 65(3), 221-226. Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/1941678143?accountid=8289
Sales by Country (n.d.). Retrieved March 23, 2018, from http://www.electroluxgroup.com/en/sales-by-country-265/
Strategy, Electrolux Group (n.d.). Retrieved from http://www.electroluxgroup.com/en/category/about/strategy/
Su, Z., Peng, M. W., & Xie, E. (2016). A Strategy Tripod Perspective on Knowledge Creation Capability. British Journal Of Management, 27(1), 58-76.
According to Collins (2010), Porter developed five generic strategies by which businesses could select from and implement to best achieve a competitive advantage in any given marketplace (as cited by Porter, 1980). Focusing on either a narrow or broad market segment, Collins (2010) notes that Porter’s five strategies fall under the classifications of focus, cost leadership and differentiation (as cited by Porter, 1980). The focus strategy directs a firm’s resources against a small number of specific niche target markets (Collins, 2010, p. 309). In doing so, a business can effectively situate itself to increase both its customer satisfaction as …show more content…
According to Collins (2010), this would be considered an integrated strategy (p. 310). This type of strategy mixes the best qualities of the two allows a company to distinguish itself as an innovative business who can provide customized products that are highlighted by differentiated services (i.e. brand offerings, competitive pricing and a wide-ranging inventory) (Collins, 2010, p. 310). This assessment is supported by the fact that according to Electrolux’s corporate strategy, the company intends to provide its customers with the best-in-class consumer experience prior to, during and following the purchase of an Electrolux product (Business Model for Best-in-Class, n.d.). Additionally, the company aims to achieve a competitive cost structure by minimizing the cost of products and the effective/reduced use of its resources (Business Model for Best-in-Class, n.d.). Lastly, Electrolux acknowledges the digital environment and how it impacts consumer behavior, continues to improve upon its core competencies and focuses on sustainability (Business Model for Best-in-Class, n.d.). Thus, analysis of Electrolux’s corporate strategy indicates the company currently employs an integrated strategy that best suits the organization and will likely continue to result in the achievement of the firm’s business …show more content…
(2012, October 13). How U.S. business can win against China. Retrieved March 21, 2018, from https://www.washingtonpost.com/business/how-us-business-can-win-against-china/2012/10/12/7d773e80-0f3b-11e2-bd1a-b868e65d57eb_story.html
Employees by country, (n.d.). Retrieved March 23, 2018, from http://www.electroluxgroup.com/en/employees-by-country-994/ References
Get to Know Us | Electrolux Careers - Electrolux Group. (n.d.). Retrieved March 23, 2018, from http://career.electroluxgroup.com/get-to-know-us/
Market Development (n.d.). Retrieved March 23, 2018, from http://www.electroluxgroup.com/en/market-development-240/
Oncioiu, I., Stanciu, A., Boteanu, C., & Bîlcan, F. (2017). Relationship between corporate culture and organizational performance. Electrotehnica, Electronica, Automatica, 65(3), 221-226. Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/1941678143?accountid=8289
Sales by Country (n.d.). Retrieved March 23, 2018, from http://www.electroluxgroup.com/en/sales-by-country-265/
Strategy, Electrolux Group (n.d.). Retrieved from http://www.electroluxgroup.com/en/category/about/strategy/
Su, Z., Peng, M. W., & Xie, E. (2016). A Strategy Tripod Perspective on Knowledge Creation Capability. British Journal Of Management, 27(1), 58-76.