The Advantages Of Porter's Generic Strategies In Business

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In this millennia, there are a lot of emerging businesses with many pros and cons of it. One of the main advantages for consumers is that they would have a lot of choice. The downside of having numerous emerging businesses is the competition of an industry would be stiffer. Therefore, Michael Porter, a professor based currently at Harvard Business School, has developed a universal strategy for any businesses which is known as Porter’s Generic Strategies. (Harvard Business School, n.d.) Porter’s Generic Strategies come after Porter’s Five Forces model which is introduced to help a business understands their situation and it is useful to recognize a business’ strength about the current competitive position. (MindTools, n.d.) The strategies are divided into 3 sections which is cost leadership, differentiation and focus. The focus section …show more content…

Even though this four competitive strategies is considered generic, it would not suit every business such as small businesses. Secondly, I could use the Five Forces Analysis to understand in detailed the nature of my business. After getting the details, I would compare the results of both analysis to make the best decision. Say that I would choose to use the differentiation plan, I would set up a committee to fulfil the things that an organization needs in order to succeed in this plan. I will send some people in the research and development department to go training so they will gain more experience and can apply it to our business. Next, I will personally make sure that they will be providing the best products and services by making a frequent spot checks. Hiring the right people for sales and marketing is essential. Therefore, I would be the one who will be hiring the head of the said

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