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BUSINESS STRATEGIES

By
MOHIT KUMAR

BUSINESS STRATEGIES • Business strategy focuses on improving the competitive position of a company’s business unit’s products or services with in the specific industry or market segment that the company or business unit serves .

such as quality or service? . or should we differentiate our products or services on some basis other than cost. Competitive strategy raises the following questions :  1) Should we compete on the basis of low cost(and thus price ).

or should we focus on a niche in which we can satisfy a less sought-after but also profitable segment of the market? .after share or the market.• Should we compete head to head with our major competitors for the biggest but most sought.

Michael porter • Porter’s competitive strategies • Or • Porter’s generic competitive strategies • .

Porter’s generic competitive strategies • Lower cost strategy • Differentiation strategy .

PORTER’S GENERIC COMPETITIVE STRATEGIES LOWERCST DIFERNTAO BROAD TARGET C O S T LE A D E R S HD IIPFFE R E N T IA T IO N NARROW TARGET C O S T FO C DU ISFFE R E N T IA T IO N FO C U S .

Example • Cost leadership • Differentiation • Cost focus • Differentiation focus .

• Risk in competitive strategies • Issues in competitive strategies • Industry structure and competitive strategy • Hyper competition and competitive strategy • .

The Eight Dimensions Of Quality • Performance • Features • Reliability • Conformation • Duration • Serviceability • Aesthetics • Perceived quality. .

Risk Of Generic Competitive Strategies Risk in cost  Risks of  leadership differentiation • Competitors intimate • Competitors imitate • Technology change • Base for differentiation • Other bases for cost become less leader important to buyers • .

Risks of focus • The focus strategy is imitated • The target segment become structurally unattractive: • Structure erodes • Demand disappears • .