WK2 -DQ 2 - However in addition to this information...

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MGT/498 – Strategic Management University of Phoenix Professor:  TUGTEKIN GOKAYDIN Katie Williams 12/06/2011 Week 2 – Assignments Discussion Question #2: What is Porter’s Approach on competitive strategy? After reading this week’s textbook chapters, I found a quote in Chapter 6, that I think best suits this particular discussion question. According to (Wheelen, & Hunger, 2010, p. 185), “Michael Porter proposes two “generic” competitive strategies for outperforming other corporations in a particular industry: lower cost and differentiation. These strategies are called generic because they can be pursued by any type or size of business firm, even by not-for-profit organizations: Lower cost strategy is the ability of a company or a business unit to design, produces, and market a comparable product more efficiently than its competitors. Differentiation strategy is the ability of a company to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service.”
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Unformatted text preview: However, in addition to this information presented to us by our textbook, I think that Porter’s approach to competitive strategy is known to many as a way for a company or industry to learn what there competitive scope may be. In addition to our textbook, one of our weekly articles discusses Michael Porter’s competitive strategy approach in a bit more detail and it also gives a fantastic little graph of his strategy. In addition, to the lower cost strategy and the differentiation strategy Porter also mentions the cost focus, which is basically a low-cost competitive strategy. Cost focus, “is a strategy that focuses on a particular buyer group or geographical market and attempts to serve only this niche, to the exclusion of others” (Wheelen, & Hunger, 2010, p. 187). Reference: Wheelen, T. L., & Hunger, J. D. (2010). Concepts in Strategic Management and Business Policy: Achieving Sustainability (12th ed.). Upper Saddle River, NJ: Prentice Hall....
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