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What are generic strategies and which theories/model apply that one should learn?
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Types of generic strategies
1)Cost leadership
2)Differentiation
3)Focus (differentiation / cost)We can use the strategy clock to apply it. And this model can be used with other model
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well using the strategy clock to apply the generic model is something i dont understand. pleaese can somebody help me
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amibe it seems to me that the strategy clock is just another way in which the strategies that lead to competitive advantage can be identified, looking at the perceived benefits and price. the first three routes are based on price –
the next two are based on differentiation
the next three are failure strategiesPorter’s generic strategies recognised three options: cost leadership, differentiation and focus ( as stated above by Najmuddin). However, this omitted certain possibilities and gradations that might also be possible and those omissins have been filled by the strategic clock. For example, some firms manage both to cost lead and differentiate at the same time. This is the hybrid position in the strategic clock There might also be difference between really cheap low service companies (no frills on the strategic clock) and somewhat better, but still cheap, products and services (low cost).
Think of the clock as a development of Porter’s generic strategies.
Innovation is often the key to firms being able to keep costs low and quality high. Dell the computer firm was able to do this by being innovative in terms of the marketing channel it used cutting out retail intermediaries margins and costs associated with dealing with these inlltermediaries by dealing with end users directly and by applying just in time techniques which ensured low inventory and financing costs and allowed more advanced technology to be incorporated into the computers built by Dell.Admittedly hybrid strategies are more difficult to follow than purer generic startegies because of the tensions in terms of trade off that exist between cost and quality in most circomstances.I would agree that Bowman’s strategy clock is an advance on Porters generic strategy triangle.
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