Question
Question 1 Watch Porter's Competitive Strategy. Video. Then, discuss with your friends the following: What is competitive strategy? - Describe the 3 competitive strategies identified by Porter (1985) Provide examples of 3 real companies representing each of the 3 competitive strategies to demonstrate your understanding You must not spend more than 15mins to complete this task
Answer
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Yolanda
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Answer
1. Porter's competitive strategy is a model that identifies the three potential strategies businesses can employ to gain a competitive advantage, namely cost leadership, differentiation, and focus. 2. The three competitive strategies identified by Porter are:- Cost Leadership: Companies attempt to become the lowest-cost producers in their industry. Walmart and CostCo are notable examples of such a strategy.- Differentiation: Businesses seek to be unique in their industry in ways that are, appreciated by their customers. Apple Inc. is a good example with its innovative products.- Focus Strategy: Firms reserve their efforts to a narrow, defined segment of the market, porno to compete at either a low cost or high differentiation. Companies like Ferrari fit this strategy with high-quality luxury cars for the high-end market.3. You're not asked to spend more than 15 minutes on this task.
Explanation
This question requires an understanding of Porter's Competitive Strategy, which is a business tool used to analyze the competition level within an industry and develop a strategic bang for the business. Michael E. Porter defined the three strategies as cost leadership, differentiation, and focus. The first strategy, cost leadership, entails becoming the lowest cost producer in the industry. Examples of cost-effective companies today include Walmart and CostCo. The second strategy, differentiation, involves deliberately choosing a different set of activities to deliver unique customer value—like what Apple Inc. managed to deliver with their innovative products. Lastly, focused strategy implies competing on cost leadership or differentiation, but in small, specialized, or niche markets, similar to what Ferrari does. Having clear examples to illustrate your understanding makes it easier to discuss these strategies with friends.