Understanding the Forces That Determine Competitiveness Within an Industry Should

Question

Examlex · Accepted Answer

The Answer is The three generic strategies Porter developed to illustrate the kind of strategies managers might develop to make their organizations more competitive include: differentiation, cost leadership, and focus.
1. Differentiation is a strategy that focuses on making an organization more competitive by developing a product or products that customers perceive as being different from those offered by competitors. Differentiation includes uniqueness in such areas as product quality, design, and level of after-sales service. Examples of products that customers commonly purchase because they perceive them as being different are Nike's Air Jordan shoes (because of their high-technology "air" construction) and Honda automobiles (because of their high reliability).
2. Cost leadership is a strategy that focuses on making an organization more competitive by producing products more cheaply than competitors can. According to the logic behind this strategy, by producing products more cheaply than its competitors, an organization will be able to offer products to customers at lower prices than competitors can, and thereby increase its market share. Examples of tactics managers might use to gain cost leadership are obtaining lower prices for product parts purchased from suppliers and using technology such as robots to increase organizational productivity.
3. Focus is a strategy that emphasizes making an organization more competitive by targeting a particular customer. Magazine publishers commonly use a focus strategy in offering their products to specific customers. Working Woman and Ebony are examples of magazines that are aimed, respectively, at the target markets of employed women and African Americans.

Understanding the Forces That Determine Competitiveness Within an Industry Should

Essay

Correct Answer:
Verified

Understanding the Forces That Determine Competitiveness Within an Industry Should

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified