poter's generic strategies& international strategy
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PORTER’S GENERIC STRATEGIES
INTERNATIONAL STRATEGY
K.venkatesh
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INDUSTRYWIDECOST
LEADERSHIPDIFFERENTATION
FOCUS
GENERIC STRATEGIES
PARTICULARLY SEGMENT
ONLY
C
OM
PETIT
IVE S
CO
PE
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An integrated set of actions designed to produce or deliver goods or services at the lowest cost, relative to competitors with features that are acceptable to customers.
relatively standardized products
features acceptable to many customers
lowest competitive price
Cost leadership:
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IT REQUIRES AN ORGANIZATION TO PURSUE:
Aggressive construction of efficient-scale facilities.
cost reduction from experience.
avoidance of marginal customer accounts.
cost minimization in areas like R&D, services , sales force , and advertising.
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71%
6%
5%12%
0%6%
NOKIA SAMSUNG HTC RIM APPLE OTHERS
32%
31%
11%
10%
4%12%
SalesNOKIA
SAMSUNG
HTC
RIM
APPLE
OTHERS
MICROMAX
KARBON
SPICE
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DIFFERENTIATIONValue provided by unique features and
value characteristics
CREATIVITY
CUSTOMIZING PRODUCTS TO SUIT
CONSUMER SPECIFIC REQUIREMENTS
MARKETING ABILITIES
RELIABILITY
Ways of differentiate:
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High capacity Sporty & stylish
Lunched in 2001 association with Glenn Kerr Tokyo R&D 43% share of Indian 150cc segment
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A focus strategy must exploit a narrow target’s differences from the balance of the industry by:
Isolating a particular buyer group
Isolating a unique segment of a product line
Concentrating on a particular geographic marketfinding their “niche”
FOCUS STRATEGIES
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International Strategy
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Sources of competitive advantage:
National Differences
Economies of Scale
Economies of Scope
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MULTIDOMKESTIC STRATEGY
GLOBAL STRATEGY INTERNATIONAL STRATEGY TRANSNATIONAL STRATEGY
TYPES:
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ORGANIZATIONAL CHARECTERISTIC
MULTIDOMESTIC
GLOBAL INTERNATIONAL
CONFIGURATION OF ASSETS&CAPABILITIES
Decentralized & nationally sufficient
Centralized & globally scaled
core competencies centralized
ROLE OF OVERSIES OPERATIONS
Sensing & exploiting local opportunities
Implementing parent company strategies
Adapting & leveraging parent company competences
DEVELOPMENT&DIFUSION OF KNOWLEDGE
Knowledge developed & retained with each unit
Knowledge developed & retained at the centre
Knowledge developed at the centre & transferred to overseas units
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ENTRY MODE STRATEGIES:
EXPORTING
LICENSING
FRANCHISING
STRATEGIC ALLIANCES
JOINT VENTURE
WHOLLY OWNED SUBSIDIARY