In this case study, you will research an organization and determine how their business strategy differentiates them from other organizations in the same industry using Porter’s four competitive strategies model (p. 85).
Write a one- to two-page (250-500-word) paper to include the following:
A brief explanation of Porter’s four competitive strategies. o A brief explanation of how competitive strategy determines value chain structure. Identify and discuss the competitive strategy that the organization you researched utilizes in order to differentiate them from other organizations in the same industry.
APA rules for formatting, quoting, paraphrasing, citing, and listing of sources are to be followed.
The Porter’s strategy gives the business an edge in the market. The four strategies adopted by Porters are the low-cost advantage, evaluating strategies, cost leadership, and Focus-differentiation. The cost leadership strategies entail a business to produce goods and services cheaply in the competitive environment. Producing goods at a low cost makes the business sell at a low price that the competitors and If the price is the major market drive, the business sell more. The differentiation strategy involves the concentration on one or several sectors of the market. This strategy involves the ability to get creative personnel, creative approach to the business, and reputation for quality service and improved services. Evaluating strategy involves tying all the factors in business to implement the strategies. The implementation requires the commitment by the management. Cost leadership strategy involves tight financial control, reduce overhead costs adoption of the economy of scale and investment in technology to lower the cost. The advantage of cost leadership strategy is the reduction in cost by changing technology (Kroenke, 2014).
Value Chain and Competitive Strategy
The competitive strategy involves each business doing an analysis the industry this will help it lower its production and supply chain or differentiate its goods and services from competitors. After evaluating the competitive strategy, the business must design the business to involve value-generating activities. Once a business has attained the above, the value-chain structure can be modified to support the business process (Kami, 2016).
Toyota Company uses the both differentiation and low-cost strategies to gain the competitive advantage over its competitors in the industry. This strategy is a big deal to the car company and affects the profit of the company positively. The market which Toyota operates in is wide and competitive therefore the company has the strategy of producing variety for any customer. The company has hybrid models, standard cars four wheel trucks and SUVs used in outdoor activities. Also, the company produces vehicles for a wide range of prices. Toyota has successful adopted differentiation strategy for their quality and superior design. The company has created a brand image which is strong and is perceived as long lasting cars and of high quality when customers see it. This record has given the company the advantage in the market.
Kami, M. (2016). Developing Your Strategy. Retrieved 07 03, 2017, from Modern Management of Small Business: http://jsmith.cis.byuh.edu/books/modern-management-of-small-businesses/s09-01-developing-your-strategy.html
Kroenke, D. (2014). Using MIS. Retrieved July 3, 2017, from https://online.vitalsource.com/#/books/9781323290989