5 Generic Strategies for Enhancing Competitive Advantage - Essay Sample

Introduction

Five generic strategies are mechanisms suggested by Michael Porter whose sole purpose regard enhancing the competitive advantage of the business through the alignment of the bases of differentiation, focus, and cost leadership (Lauer, 2019). The three main streams of emphasis, cost leadership, and differentiation translate into five generic strategies, which include; Low-Cost Strategy, Differentiation Strategy, Best Price Strategy, Focus – Low-Cost Strategy, and Focus – Best Value Strategy. Different brands/products utilize these five generic strategies to create a competitive advantage in the endeavors of sales enhancement (Lauer, 2019). In this write-up, a discussion correlating with the usage of five generic strategies in different brands/products is put up and explained extensively.

Swatch Watch

Swatch watch utilizes a low-cost generic strategy in a considerably. The usage of the plan attains evidence from the mode of sales perpetrations divulged by the Swatch Watch industry in the sales of the consumer products (Schmidt, 2018). Evidence emerges in the sense that the cost of the consumer products accrues reductions remarkably for competitive advantage gain. Besides, the cost reductions by Swatch Watch gain enhancement through adequate identification of the target market segments of the industry products. Similarly, the generic strategy implemented by Swatch Watch aimed at market expansion without significant efforts input in the promotion purposes of the products (Schmidt, 2018). The market expansion of Swatch Watch secures perpetration through critical competitive achievement by the company leading to the development of an impeccable customer taste.

McDonald’s Dollar Menu

McDonald’s Dollar Menu implements a generic strategy in the cost leadership stream in the model proposed by Porter. The low-cost generic approach attains an exceptional utilization in the mode of product sales perpetrated by McDonald's enterprise (Agustí, 2017). The evidence ascertains from the price of the products offered by McDonald, which deems to be lower compared to the competitors to the as Arby’s. Even though the enterprise uses the low-cost generic strategy, MacDonald company also divulges a considerable differentiation about the company products (Agustí, 2017). MacDonald enterprise adopts distinction as a secondary generic strategy in the advancement of the competitive advantage of the company. In the process of differentiation, McDonald's enterprise aims at making the products of the company distinct from the ones offered by the competitors.

Starbucks Coffee

The generic strategy offered by Starbucks Coffee enterprise correlates with the enhancement of the company intensive strategy of growth through differentiation. Differentiation of the products enables Starbucks Coffee enterprise to provide specialty products aligning to the company mode of operation relating to intense growth (Choi, 2017). Furthermore, the competitive advantage of Starbucks Coffee attains perpetration through the provision of the specialty products in various segments of the company market. Consequently, product differentiation implemented by Starbucks Coffee enhances the process of making the company distinct from the competitors (Choi, 2017). Accordingly, the accrued company distinction enables the enterprise to gain customer identification associating with the company products leading to competitive advantage facilitation. The provision of specialty products leads to the standing out nature of Starbucks Coffee enterprise. The enterprise stands out quality facilitates the market coverage translating to higher sales volume.

Subaru Cars

Subaru operates in a marketing segment that portrays considerable levels of competition. In the process of enhancing the market share and competitive advantage, Subaru has perpetrated an exceptional combination of the remarkable streams of generic strategies (Sidiropoulou, 2018). For instance, the enterprise utilizes the streams of differentiation, cost leadership, and focus strategies in the management of the competition pressures evident in the marketing arena. The three generic strategy streams focus on the marketing base expansion as well as sales growth through the adoption of intensive growth strategies (Sidiropoulou, 2018). Accordingly, the intensive growth strategies effectually offer Subaru cars adequate diversification, product development, market development, and market penetration.

University of Phoenix Online Academic Degrees

In the facilitation mechanisms of the competitive advantage of the online degree programs offered by the university, the institution has instigated a remarkable utilization of the generic focus strategies (Imai, 2016). For instance, the institution has implemented a Focus – Best value Generic Strategy that displays effective incorporation of high-quality degree programs in comparison with the competitors of the institution. According to the generic strategy of Best Value accrues facilitation from the Focus – Best Price generic strategy in the pricing mechanisms of the offered degree programs (Imai, 2016). The best price generic strategy enhances exceptionally the market coverage of online academic degrees offered by the University of Phoenix due to the facilitation of competitive advantage.

Dick’s Sporting Goods Store

Dick's Sporting Goods Store enterprise implements an exceptional generic strategy that correlates with a competitive pricing mechanism (Kapur, 2016). The pricing mechanism ascertained competitive in nature associates with the Focus – Best Price generic strategy implemented by Dick's Sporting Goods Store enterprise. Accordingly, the company offers exceptional goods storage services at the best prices compared to the competitors in the marketing arena. The adopted Focus – Best Price enhances the competitive advantage of the enterprise considerably (Kapur, 2016). The promoted competitive advantage, in turn, facilitates market coverage of Dick's Sporting Goods Store.

Lens Crafters Eyeglasses

In the sales perpetrations of Lens Crafters Eyeglasses company marketing mechanisms, the institution has effective incorporation of the generic strategy of product differentiation (Gu, 2017). As a result of the implementation of the product differentiation mechanism, the enterprise has facilitated the uniqueness of the company products in the marketing arena. The peculiar nature of the products offered by Lens Crafters Eyeglasses has, in turn, enhanced the competitive advantage of the enterprise exceptionally as well as customer product identification mechanisms (Gu, 2017). Accordingly, the facilitated competitive advantage has led to an increment in the company's market coverage. The increased market coverage by Lens Crafters Eyeglasses has translated into remarkable sales of the enterprise products.

Walmart

In the expansion of the competitive marketing advantage, Walmart has incorporated a cost leadership stream generic strategy. The applied streams of generic approach aim at enhancing the low-cost strategy as the provider of the retail goods and services offered by Walmart (Mazouni, 2018). Walmart's facilitated competitive advantage, in turn, improves the market coverage of the enterprise as compared to the competitors. Accordingly, the market coverage of the Walmart accrues exceptional enhancement given the fact that low prices form an essential selling point for correlated retail services (Mazouni, 2018). Furthermore, the promoted market coverage leads to a colossal realization in the sales volume and thus framing Walmart as a lucrative enterprise.

Tide Detergent

Tide Detergent enterprise implements a typical generic strategy in the focus stream. The integrated focus stream generic strategy includes Focus – Best Price generic and the Focus – Best Value generic strategies (Malone, 2020). The adoption of these incredible generic strategies attains facilitation from the endeavors of Tide Laundry Detergent enterprise, offering high-quality agents of cleaning at favorable prices. Besides, the generic focus strategies utilized by the enterprise enhance the competitive advantage of Tide Detergent considerably, leading to extensive market coverage (Malone, 2020). The increased market coverage, in turn, leads to the colossal realization of sales volume.

Conclusion

In this write-up, an exceptional presentation of the implementation correlating with generic strategies various brands/products accrues perpetration. Besides, the reasons for the usage of the generic approach in the focused companies have achieved an astounding elucidation. Furthermore, the extent of promotion relating to the business endeavors of the addressed enterprise as a result of the usage of the generic strategies has accrued a stunning address in the write-up.

References

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Choi, Jin-Ah (Department of International Business and Trade, Myongji University). (2017). Imitation as a viable strategy: The case of ediya in the Korean coffee franchise industry. The Journal Of Distribution Science. Retrieved 23 June 2020, from https://www.koreascience.or.kr/article/JAKO201716463830153.page.

Gu, X., Wu, S., Peng, P., Shou, L., Chen, K., & Chen, G. (2017). An effective and efficient cross-scenario image retrieval model for glasses. Information Sciences. Retrieved 23 June 2020, from https://dl.acm.org/doi/10.1016/j.ins.2017.07.027.

Imai, P., Kresyman, S., & Asadoorian, J. (2016). Factors Influencing Dental Educators As They Develop Problem-Based Learning Cases. Journal Of Dental Education. Retrieved 23 June 2020, from https://pubmed.ncbi.nlm.nih.gov/27251356/.

Kapur, A. (2016). Mobile apps vs. mobile Web: Do you have to choose?. Dealer Marketing. Retrieved 23 June 2020, from https://www.dealermarketing.com/mobile-apps-vs-mobile-web-choose/.

Lauer, T. (2019). Generic Strategies, Outpacing and Blue Ocean-Discussing the Validity of Three Strategic Management Theories Using Case Studies from Airlines and Grocery Retail. Theory Methodology Practice. Retrieved 23 June 2020, from https://www.researchgate.net/publication/338099737.

Malone, T. (2020). How Can Human-Computer “Superminds” Develop Business Strategies?. The Future Of Management In An AI World. Retrieved 23 June 2020, from https://www.springerprofessional.de/en/how-can-human-computer-superminds-develop-business-strategies/.

Mazouni, M. (2020). The Effect of Global Investment Decisions and Financial Risk on Multinational Corporations: Walmart Corporation Case Study. Journal Of Risk Research. Retrieved 23 June 2020, from https://www.researchgate.net/publication/328271863.

Schmidt, A. (2018). Strategic Reorientation Due to Competitors’ Disruptive Innovation. German-Turkish Perspectives On IT And Innovation Management. Retrieved 23 June 2020, from https://link.springer.com/chapter/10.

Sidiropoulou, M. (2018). Markets and the creative paradigm: Identity variability in English-Greek translated promotional material. The Journal Of Specialised Translation. Retrieved 23 June 2020, from https://www.researchgate.net/publication/325361840.