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Q: marketing ( No Answer,   1 Comment )
Question  
Subject: marketing
Category: Miscellaneous
Asked by: 101manu-ga
List Price: $5.00
Posted: 02 Feb 2003 22:40 PST
Expires: 04 Mar 2003 22:40 PST
Question ID: 156605
what is porter's and treacy and wiersema's competetive strategies?
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Subject: Re: marketing
From: davidrhoades-ga on 07 Feb 2003 21:09 PST
 
Hi Manu,

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David.

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The below from http://home.att.net/~nickols/strategy_definitions.pdf

Strategy According to Michael Porter
In a 1996 Harvard Business Review article [5] and in his 1986 book,
Competitive Strategy [6], Porter argues that competitive strategy is
"about
being different." He adds, "It means deliberately choosing a different
set of
activities to deliver a unique mix of value." In short, Porter argues
that
strategy is about competitive position, about differentiating yourself
in the
eyes of the customer, about adding value through a mix of activities
different from those used by competitors. In his earlier book, Porter
defines
competitive strategy as "a combination of the ends (goals) for which
the
firm is striving and the means (policies) by which it is seeking to
get there."
Thus, Porter seems to embrace strategy as both plan and position. (It
should
be noted that Porter writes about competitive strategy, not about
strategy in
general.)


Strategy According to Treacy and Wiersema
The notion of restricting the basis on which strategy might be
formulated
has been carried one step farther by Michael Treacy and Fred Wiersema,
authors of The Discipline of Market Leaders [9]. In the 1993 Harvard
Business Review article that presaged their 1994 book [10], Treacy and
Wiersema assert that companies achieve leadership positions by
narrowing,
not broadening their business focus. Treacy and Wiersema identify
three
"value-disciplines" that can serve as the basis for strategy:
operational
excellence, customer intimacy, and product leadership. As with driving
forces, only one of these value disciplines can serve as the basis for
strategy. Treacy and Wiersema’s three value disciplines are briefly
defined
below:

Operational Excellence
Strategy is predicated on the production and delivery of
products and services. The objective is to lead the
industry in terms of price and convenience.

Customer Intimacy
Strategy is predicated on tailoring and shaping products
and services to fit an increasingly fine definition of the
customer. The objective is long-term customer loyalty
and long-term customer profitability.

Product Leadership
Strategy is predicated on producing a continuous
stream of state-of-the-art products and services. The
objective is the quick commercialization of new ideas.

The below on Porter from http://www.mgt.smsu.edu/mgt487/compst3.htm

Porter's Generic Competitive Strategies
Michael Porter sees three ways in which a firm can gain a competitive
advantage: cost leadership, differentiation, or focus. He calls these
generic strategies because they can be applied to a firm in any
industry. A cost leadership strategy is one in which a firm strives to
have the lowest costs in the industry and offer its products or
services to a broad market at the lowest prices. A firm that uses a
differentiation strategy is one that tries to offer products or
services with unique features that customer’s value. The value added
by the uniqueness lets the firm command a premium price. The focus
strategy can be either a cost leadership or differentiation strategy
aimed toward a narrow, focused market. We now have four different
strategies that we can model as follows:
- Cost leadership 
- Broad-market differentiation 
- Focus Cost 
- Focus differentiation
Neither of these strategies is inherently good or bad. Strategists
must examine the results of the SWOT analysis to determine which one
is best for the firm.

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