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The Porter generic strategy model examines two major marketing planning concepts and the alternatives available with each: competitive scope (broad target or narrow target) and competitive advantage (lower cost or differentiation). By combining the two concepts, the Porter model identifies these basic strategies: cost leadership, differentiation, and focus. |
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Dominant economic characteristics of the industry environment covers market size and growth rate, geographic scope, number and sizes of buyers and sellers, pace of technological change and innovation, scale economies, experience curve effects, capital requirements, and so on. |
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The product/market opportunity matrix identifies four alternative marketing strategies that may be used to maintain and/or increase sales of business units and products: market penetration, market development, product development, and diversification. |
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An examination of successful hypercompetitive firms by Richard D’Aveni – and published in his remarkable book, Hypercompetion -- revealed that many utilized some or all of a new set of approaches—the New 7-S's. The first two of these S's—stakeholder focus and strategic soothsaying—are concerned with establishing a vision for how to disrupt the market. |
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An industry's competitive conditions and overall attractiveness are big strategy-determining factors. A company's strategy has to be tailored to the nature and mix of competitive factors in play : price, product quality, performance features, service, warranties, and so on. |
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A simple way to view the Growth System is as gears in an engine. The Growth System's three basic gears (cornerstones) are commitment, strategy, and capability. The following paragraphs give some examples of the role each cornerstone plays in the Growth System.
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Five competitive forces in Porter's Model are as follows:
1) Rivalry among competing sellers; 2) Threat of potential entry
3) Competition from substitutes; 4) Power of suppliers and
5) Power of customers |
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Strategic Management
