Generic Strategy Porter’s three strategies consist of overall cost leadership, differentiation, and focus. Overall cost consists of low-cost production and involves the delicate balance of managing the relationships throughout the value chain, while still being able to lower costs throughout the entire chain. (Dess, 2012, p. 162) Differentiation are similar to core competencies to the extent that the focus surrounds creating a unique and valuable product or service. Finally, the last of Porter’s three generic strategies is focus, which constitutes directing attention toward narrow product lines, buyer segments, or targeted geographic markets while utilizing either the overall cost leadership or differentiation strategies. (Dess, 2012, p. 162) In essence, the generic strategy of focus cannot be sustained merely by itself. So the question arises, what is the best generic strategy to use for StilSim? From everything I have observed thus far, I would feel comfortable stating that differentiation will be
STRATEGIC PLANPage 42.in the firm’s best interest, coinciding with focus of course. The financial analysis revealed that the profits within StilSim are at their all-time lowest and while there are some opportunities present, it should be noted that we must act on these quick as these financials continue to decline.For 25 years, the firm has acted in a consistent manner, which has placed some of their ideas andprocesses in an outdated folder. The opportunity to break into new industries such as the health field as well as expanding into more markets will not only give StilSim a competitive advantage, but will also give some growth capabilities. It may be wise to consider niche type of positions within these new industries to separate them from the competitors. For example, in a previous role, I supported staffing Japanese bilingual candidates, which was more niches driven but gave my firm a competitive edge based on the specifics of staffing these particular roles. The issue here is that we need the right people to contribute to these roles. This is where training will take place. The idea is to embrace some team building activities with some after hour training sessions that will allow each one of our employees to gain new knowledge and skills. The goal here is to change the cultural attitudes and have each of our recruiters certified via NAPS and CPC. The two pieces will go hand in hand because our recruiters will now have the right skills to find the niche talent for the new industries will be breaking into. When we consider other market dynamics, its interesting to compare to companies like Apple, who have revolutionized the Mp3 player to be a phone in association with iTunes. This is unique and gives Apple a competitive advantage. Corporate Level Strategies As mentioned earlier, corporate level strategies are designed to understand what businesses to compete in and how businesses can be managed to achieve synergy where they
STRATEGIC PLANPage 43.
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