Question

Porters Generic Strategies slide(s) - place your business in the quadrant where it should reside and identify real-life competing organizations in the other quadrants. (deli store)

Location Detroit Area

Products, Healthy bread, Healthy subs, soups fresh made drinks

Answer 1

Generic Porter strategies can be used to determine your business's direction( strategy). Four strategies can be chosen by a business.

The following four strategies are chosen:

- cost leadership,

- differentiation,

- cost focus,

- differentiation focus

Now let's place our business (deli store) in one of the quadrants. Let me keep my business in Cost focus quadrant. Because my focus is a niche market that means I will have a very small competition and my business will offer the lowest price possible to stay ahead in the market.  

Now let's see what happens in other quadrants or business chooses to use another strategy.

Cost Leadership: Suppose a company wants to offer the lowest price possible to their customers but also have a large market share. That means the demand for their products is high and the cost is low. Or, you can choose to keep costs as low as possible or make sure you have a greater market share at average prices. The point is to keep the cost of the company as low as possible in both cases. Organizations that successfully implement this strategy usually have substantial investment capital, efficient logistics and low costs for materials and labor. The companies which are using this strategy are Walmart, McDonald's, many more.

Differentiation: Suppose you are producing a product or providing a service which is very unique and has very high demand in the market. Then the strategy which you are using is differentiation. By applying this strategy you can make your product much more attractive in comparison to the product offered by the competitors. If you want to succeed by using this strategy then your marketing of the product should be effective only then, the consumers will be able to know the benefit of your product. Also, you must have the ability to adapt to the changing market condition otherwise you won't be able to stay ahead of your competitors. The companies which are using this strategy are Gillette, Delta, etc

Differentiation Focus: Suppose you are producing a product or providing a service which has a very unique feature and your focus is on the niche market. If you want to stay ahead in the competition then make sure that your product should have some unique feature.