- This topic has 2 replies, 2 voices, and was last updated 9 years ago by
.
-
Posts
-
Stuck-in-the-middle’ is therefore what many companies actually pursue quite successfully. Any number of strategies can be pursued, with different approaches to price and the perceived added value (ie the differentiation factor) in the eyes of the customer
The bpp text says this^ at the end of the topic generic strategies. But what I understood before is that stuck in the middle approach shud not be pursued and there shud a single competitive strategy to be successfull. So what is that paragraph trying to say?
The Porter theory of generic strategies says that to be successful a company either has to be a cost leader or differentiator to allow good profits to be made. Stuck in the middle means being trapped between high costs and low selling prices, so will only be able to make small profits that will provide no sustainable future.
The cost leader/differentiation dichotomy was expanded in the strategic clock, which allowed several other successful strategies.
I would not worry too much about what the BBP text said.
- You must be logged in to reply to this topic.