Question

Explain the relationship between the three generic strategies and the five forces that determine the average profitability with an industry

Answer 1

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here I am going to explain about the relationship between the three generic strategies and the five forces that determine the average profitability with an industry.

first of all I am going to describe about the three generic strategies that are cost strategy, differentiation strategy, focus strategy.

COST STRATEGIES :- cost strategy is that strategy which is very helpful in the decreasing the cost of the organisation as well as with the cost strategy it really benefits organisation by the means of money saving.

DIFFERENTIATION STRATEGY :- conservation strategy is open in the organisation to maintain the customer reality by providing them variety of the production services they require according to their leaves, wants and preferences.

FOCUS STRATEGY :- the main focus of the focus strategy is true of the low cost strategy with the high target and more differentiation variety and strategies to maintain the focus in the organisation and to be functioning smoothly.

the above three strategies are generic strategies and are related to the porter's five forces in a way to find out the average profitability in an organisation or an industry as these generic strategies are really helpful in the management of the cost and the profitability of an industry and with the help of porter's five forces this become really easy to find out how to determine the probability of an organisation or an industry. porter's five forces and the three generic strategies are interrelated to each other.