A firms performance is depended on the implemented strategies which is based on

A firms performance is depended on the implemented

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based on the resource view, institution base view and industry based view (Peng,2009).A firm will implement it strategies based on its available resources as in relation to resource based view.Electrolux has employed cost leadership as compared to its competitors. Based on industry view, the firm has to implement strategies that cut across in the market. This is through producing standardized goods and products. On industry view, a firm has operate as per the regulations in the industry. For instance, the government controls and influences the operation of Electrolux. Industry view affects the performance of any firm in that industry.Porter’s four strategies and the best strategy for Electrolux.Porter's generic strategy is applied by organizations to achieve competitive advantage. The four approaches are; Focus strategy, integrated cost leadership-differentiation strategy, leadership strategy and the differentiation strategy (Porter 1985). The cost leadership is where the organization targets to be the only producer who sells at lowest cost. In this, the firm seeks to lower the cost of production for its products. To attain this, the firm requires to produce in large scale to enjoy the economy of scale. In producing in large scale, the firm will be able to command a significant market share. Secondly, in differentiation strategy, the firm tries to have awide range of products that stand out in the market and are attractive to the consumers. The firm
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ELECTROLUX AB CORPORATE STRATEGY 5will create products with different features in comparison to its competitor's products. Differentiation strategy is a broad scope since most firm aims at attracting and retaining a significant market share (Porter, 1985).On the other hand, in Focus strategy; the firm emphasis in serving a particular consumer base or a certain market segment. The firm aims at delivering a specific product to a selected group who are better off than serving them a broader market. The strategy is effective for small aggressive firms. In the integrated cost leadership-differentiation strategy, its emphasis on the useof incorporated strategies rather than relying on a generic approach. The firm that uses this strategy produces it’s good that is not unique as compared to the rest.
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