Strategic Management: Task 2

This presentation discusses Porter's generic strategies and Ansoff matrix in strategic management. It explores cost leadership, differentiation, focus, differentiation focus, market penetration, market development, product development, and diversification. The presentation also provides recommendations for gaining competitive advantage.

Strategic
Management
TASK 2

CONT..
Porter generic strategies- It is coined by Porter as they are referred to as generic as they are
applied to services and products all over firms and industries of variety.
Cost leadership- This can be followed by of Bang & Olufsen ,in order to target a broad market
and at the same time offer at lowest possible prices
Differentiation- This can be followed by of Bang & Olufsen, in order to target a wide market
but at the same time services or goods have some kind of the unique features.

CONT..
Focus- In order to target a market which has a little competition offers the process at the
lowest rate. According to this strategy there is a requirement to choose a niche market. This
can be followed by Bang & Olufsen
Differentiation Focus- Within this strategy the Bang & Olufsen will look to develop product
differentiation but alongside one smaller number of the marketplace.
As these firms have recognizes smaller consumer group to highlight on as they can
particularly appeals the requirements of groups that could a firm that is attempting to
differentiate for large number of population.

CONT..
Ansoff matrix
It is considered as marketing planning model that aids a business so that examines its products as
well as market growth strategy.
Market Penetration- It focuses on the selling existing products into the present marketplace. The objectives
are enhanced the market share of current goods such as sales, advertising and many more. It enhance the
usage of the present consumers. This can be followed by Bang & Olufsen
Market development- According to it, business sells its existing products within new market. There are
several ways regarding approaching this strategy such as several pricing policies so that to attract various
consumers, new packaging, exporting the product to a new nation as this can be followed through Bang
& Olufsen.

CONT..
Product development- Within this business one of the major aim is to introduce new products
into the existing marketplace.
Thus this strategy needs the development of new products as well as needs business in order to
develop modified goods that can appeal within market (existing) and this can be followed by
of Bang & Olufsen.
Diversification- It is considered as expansion strategy to enter within a new market with a new
product. This is one of the risky strategy as business is moving with little experience into the
marketplace. This can be followed by Bang & Olufsen

RECOMMENDATION
There are some recommendation which can be follow to gain competitive advantage. It is
defined as
The company can follow porter strategy of differentiation. In this they can include new and
unique features within their product. It will be useful for them to gain customer attraction and
retain them.
Besides that, company can use product development strategy as well. With that they will be
attract customer by developing new product. The strategic action which can be taken is use of
technology in operations.


CONT..
 B&O currently follow strategy of customer differentiation. Here, they have targeting high
class customer who want luxury products.
 Also, the company can follow this strategy and target luxury customers. This can be done
by developing new products for them with new features and specification. With that they
can be attracted.
 Yes, this strategy will enhance B&O capability in market. They will be able to provide
high quality and advance technological products to customers. By that they will be able to
compete with rivals and gain competitive advantage.

REFERENCES
Books and Journals
 Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
 Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2016. Replication in strategic
management. Strategic Management Journal, 37(11), pp.2191-2192.
 Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal, 38(1),
pp.4-16.

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