Question

In: Finance

According to Michael Porter, an organization trying to pursue more than one competitive strategy will end...

According to Michael Porter, an organization trying to pursue more than one competitive strategy will end up stuck in the middle, explain?

Solutions

Expert Solution

According to Michael porter, a firm has to adopt only one of his three strategies which could be either low-cost, differentiation or focus.These generic strategies focuses on competitive advantage of a company over its peers.

Michael porter has advocated that a firm should choose only one of his three strategies or else, the firm will find itself struck in the middle scenario. He has advocated that if a firm is focusing on one strategy, the firm should just focus on that strategy because if the form will try to gain from other strategy, there will be a shift in the focus and direction of the firm and that may lead to deviation from overall objective and core competitiveness of the firm. He has advocated that focusing on more than one strategy will lose the entire focus and hence direction of the future trajectory cannot be established.

he has stressed on the idea that the low cost strategy and the differentiation strategy are completely different strategy hence adopting one and then if trying to adopt The other, it will lead to contradiction in its goals so it should always be trying to focus on one strategy because both are mutually exclusive strategy and focus should be maintained on the exclusive strategy.

The focal objective of differentiation and low cost are completely in contradiction with each other so if a firm is adopting one strategy, It should be continuing with that one, It should not be switching aims, because switching of aims will lead to shift in focus, and the goals cannot be properly established and achieved.


Related Solutions

According to Michael Porter, organizations cannot simultaneously pursue both a low-cost business level strategy and a...
According to Michael Porter, organizations cannot simultaneously pursue both a low-cost business level strategy and a differentiation business level strategy. Illustrate why.
The five generic strategies were formulated by Michael Porter in 1980. His book Competitive Strategy is...
The five generic strategies were formulated by Michael Porter in 1980. His book Competitive Strategy is widely seen as the founding publication of business strategy. Most of what we treat as having significance in the field can be traced to one of Porter's publications. Instructions This week, reflect on your experiences with these generic strategies. Consider how they are applied in your businesses. In particular, examine successes and failures. What worked well and what did not? What were the circumstances...
The Indian software industry has become one of the leading global markets. According to Michael Porter,...
The Indian software industry has become one of the leading global markets. According to Michael Porter, a nation’s competitiveness depends on the capacity of its leading industries to innovate and upgrade. Critically discuss Porter’s diamond of national competitive advantage. Illustrate your answer by referring to Indian software industry as an example.
The Indian software industry has become one of the leading global markets. According to Michael Porter,...
The Indian software industry has become one of the leading global markets. According to Michael Porter, a nation’s competitiveness depends on the capacity of its leading industries to innovate and upgrade. Critically discuss Porter’s diamond of national competitive advantage. Illustrate your answer by referring to Indian software industry as an example. make sure its 360 words ( 1_factor endowments, 2_demand conditions, 3_related and supporting industries, 4_ firm strategy , structure and rivalry)
What are five competitive forces by Michael Porter. Give an example such as airline industry or...
What are five competitive forces by Michael Porter. Give an example such as airline industry or retail?
According to Michael Porter, to be effective, the organization’s goals, objectives, culture, and activities must be...
According to Michael Porter, to be effective, the organization’s goals, objectives, culture, and activities must be consistent with the organization’s strategy. Discuss and give two different examples.
According to Michael E. Porter a company is faced against five forces that can affect a...
According to Michael E. Porter a company is faced against five forces that can affect a business’s profitability and sustainability within a given industry. The five forces are Bargaining Power of Customers, Threat of Substitute Products, Bargaining Power of Suppliers, Threat of New Entrants, and Competitive Rivalry within an industry. The five forces help a company realizes its strength and weakness. Bringing owns company’s weaknesses or potential threats is very beneficial to a company because the information help to adjust...
After watching the short video clip and reading "What is Strategy" by Michael Porter, discuss what...
After watching the short video clip and reading "What is Strategy" by Michael Porter, discuss what you think his main point is. Do you agree with what he is saying? Why? Do you think that his comments are relevant in today's business climate?
According to Michael Porter, the primary activities in a value chain include all except: 1) Sourcing...
According to Michael Porter, the primary activities in a value chain include all except: 1) Sourcing & Procurement 2) Inbound Logistics 3) Operationss 4) Financial Management 5) Outbound Logistics
Discuss why an organization may decide to target more than one market segment. If more than...
Discuss why an organization may decide to target more than one market segment. If more than one segment is targeted, what challenges do you think may exist?   
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT