-They cannot be static – MUST be reassessed and reformed on a continuous basis.-What is the difference between a Generic Strategy and a Grand Strategy?Generic/Competitive Strategies: the specific strategies that companies formulate to complement their distinctive competencies and achieve their long-term goals. Michael Porter identified 3 main generic strategies:Cost leadership- sell products/ services to a broad target market- strive to be more cost effective than competitors (NB!)Differentiation- creating a difference in the brands products/services – creating something unique.2 | P a g eDistell Transaction 2The Distell Group, Africa's leading spirits, wines and ready-to-drinks business has acquired top-performing producer of Scotch whiskies, Burn Stewart Distillers Limited, for just over R2,2 billion from the Scottish based CL World Brands Limited and Angostura Limited, owners of Hine Cognac and Angostura Bitters respectively amongst other global brands. The strategic purchase of the fully integrated producer of both blended and single malt whiskies will allow Distell to capitalise on the continuing global growth in whisky consumption and give it access to scarce blended and single malt stocks from prime whisky producing regions in Scotland, while also enhancing its global footprint.The deal follows an equal partner venture established in 2007 between Distell and Burn Stewart in which the two parties co-owned and marketed three Scotch Whiskies – Bunnahabhain, Black Bottle and Scottish Leader, in sub-Saharan Africa. The agreement between Distell, CL World Brands Limited and Angostura Limited involves the purchase of 100% of the equity in Burn Stewart whose portfolio includes three single malt whisky distilleries; a blending and maturation facility; a bottling hall; and a dry and finished goods storage site, as well as its in-house marketing and distribution functions. All Scotch whisky stocks currently in maturation also form part of the transaction. The diagram indicates Distell’srationale for the transactionwith Burn Stewarts Distillers.This transaction formed a strategic fit due to the capabilities of the firm and the international competitive environment since Distell have the products and Burn Stewarts have the international market.
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- choose a strategy that will be difficult for competition to copy – SUSTAINABILITY- allows the company to charge more for their products- Examples – prestige, image, technology, innovation, features, services, reliabilityFocus - choice of a narrow competitive scope within the industry – niche. (Land Rover, Porsche)- can choose a focus of cost leadership or differentiation. Grand / Alternative/Business/Master Strategies: these strategies provide basic directionfor strategic actions and build onto the generic strategies.
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