Questions On A Broad Generic Business Strategy - 1752 Words

Discussion Question 6.1 What are some drawbacks and risks to a broad generic business strategy? To a focused strategy? Three specific drawbacks to adopting a broad generic business strategy are steep cost, inflexibility to change, and inability to meet specific customer needs. A broad business strategy requires a company to incur significant cost to make sure that the entire market it is trying to reach it informed of the product or service it is providing. These cost will include things such as high levels of merchandising, marketing, and sales staff. Inflexibility to change is a real drawback of a broad strategy because the company will be so entrenched in its current strategy of manufacturing, marketing, or selling its products in a certain manner that it will be very costly for the company to make changes in the future. An example of this can be seen in the length of time that it took large retail companies to create their internet presence in response to Amazon’s explosive growth. Lastly, a broad strategy can lead to an inability to meet customers’ needs because the company is se eking to provide its products to a wide range of consumers. Adopting a broad business strategy, whether cost leadership or differentiation, does not allow the company to meet the slightly differing needs of the different consumer groups that purchase its product or service. Two specific drawbacks to a focused business strategy are inability to grow market share and niche disappearance. If aShow MoreRelatedQuestions On A Broad Generic Business Strategy1828 Words   |  8 PagesDiscussion Question 6.1 What are some drawbacks and risks to a broad generic business strategy? To a focused strategy? Having a generic business strategy will cover a vast amount of products or services, but in the end will not stand out due to it being so broad. With this type of strategy businesses will find themselves in an undesirable predicament because the consumers of the organization will not have an understanding of the firms core competencies. Incorporating to many strategies as seen fromRead MoreBusiness Strategies For A Competitive Advantage Over Rivals1378 Words   |  6 PagesGood business strategies allow a firm to gain and sustain a competitive advantage over its rivals. Broad generic business strategies can have risks and drawbacks. In a broad generic differentiation strategy, firms run the risk of the product becoming commoditized, and the competitors have matched the quality standards of the product, which then shifts the focus to price. Also, firms need to control costs, and if its differentiated features raise costs but not perceived value in the consumer’sRead MoreM ichael Porter’s Generic Strategies1656 Words   |  7 PagesMichael Porter’s Generic Strategies According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation and focus. Porter calls these bases as generic strategies. Cost leadership emphasizes producing standardized products at a very low per unit cost for consumers who are price sensitive. Differentiation is a strategy aimed at producing products and services considered unique industry wide and directed at customers who areRead MoreCompany Overview: Red Envelope1440 Words   |  6 PagesAlthough the product offerings are fairly generic, Red Envelope is not a portal-style website like Amazon. Its products are exclusive to Red Envelope. According to Porters generic strategies, firms strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus (Porters generic strategies, 2012, Quick MBA). Red Envelope does notRead MoreWhy Does Each of the Five Generic Competitive Strategies Require a Different Set of Product/Market/Distinctive Competency Choices?1364 Words   |  6 PagesMANAGEMENT 1 Question Why does each of the five generic competitive strategies require a different set of product/market/distinctive competency choices? Give examples of pairs of companies in Zimbabwe’s computer industry and food industry that pursue different competitive strategies. Answer The five generic competitive strategies have become some of the most used competitive strategies in contemporary corporate management. Michael E. Porter (1980) described competitive strategy asâ€Å"†¦ beingRead MoreStrategic Marketing Management Essay689 Words   |  3 PagesStrategic Marketing Management Sample Exam Questions Question 1: a. Is the PLC (Product life cycle) concept useful in developing Marketing strategies? Describe why or why not? What are the limitations of the PLC concept? A strategy is a fundamental pattern of present and planned objectives, resource deployments, and interactions of an organisation with markets, competitors and other environmental factors. b. What are the advantages available to Google with their GoogleRead MoreA Summary Of Netflixs Competitive Strategy1093 Words   |  5 PagesA companys competitive strategy is about specific rules, approaches, and procedures for competing successfully. It is all about each others rivals in the marketplace and special efforts to please customers. The five generic competitive strategies for building a competitive edge in the industry are significant factors in marketing any product or service. This essay shares the competitive strategies that the Netflix company employed for an ever-growing success while proving that a low-costRead MoreA Case Study On The Generics Business Level Strategy1230 Words   |  5 PagesA generics business-level strategy gives a company a specific form of competitive position and advantage vis-à  -vis its rivals that results in above average profitability. A company can either have a broad or narrow approach to the market. Companies that target a broad market can either concentrate on lowering their costs so they can lower prices and still make a profit, in which case they are pursuing a broad low-cost strategy. If a company try to differentiate their product in some way, they areRead MoreCase Study : Competency, Strategy, And Culture1688 Words   |  7 PagesElectrolux: Competency, Strategy, and Culture Heather M Calci American Public University BUSN 313: Introduction to Global and Competitive Strategy November 26, 2016 Abstract In this paper we are going to look at the company of Electrolux, the development of the company. The company’s ethics and strategies’ to stay competitive for many years along with the gain of populates of the company. How did Electrolux gain the consumers loyalty as well the target market the company wanted? The company whoRead MorePanera Bread Company1498 Words   |  6 Pagesformulate and direct their strategic management activities. Sophisticated planners, such as General Electric, Procter Gamble, and IBM, have developed more detailed processes than less formal planners of similar size. Small businesses that rely on the strategy formulation skills and limited time of an entrepreneur typically exhibit more basic planning concerns than those of larger firms in their industries. Understandably, firms with multiple products, markets, or technologies tend to use more complex