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Strategy Management Assignment | Porter's Generic Strategy

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Added on  2019-11-20

Strategy Management Assignment | Porter's Generic Strategy

   Added on 2019-11-20

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Running head: STRATEGY MANAGEMENTStrategy ManagementName of the Student:Name of the University:Author note:
Strategy Management Assignment | Porter's Generic Strategy_1
1STRATEGY MANAGEMENTPorter’s generic strategiesPorter’s model of generic competitive strategies was developed in the year 1980; it wasdeveloped as a result of the research study conducted by Michael Porter. According to porterIndustries are made of many firms that also include close substitutes products. Five forces rulethe competitive environment’s structure (Ormanidhi & Stringa, 2008). The five forces areThreat of new entrantsIntensity of rivalry in the industryThreat of Substitute products Bargaining power of suppliersBargaining power of buyers To understand this example of E- mart can be taken, if the analysis of the competitiveenvironment of E-mart is done, it will be see that the supermarket is facing threat fromthe new entrants that might be entering the industry.There is already too much rivalry because there are many other supermarkets like, Lottemart, Costco that are actively operating in this industry. To combat the growing onlinebuying habit of the target market E-mart has also come up with a website. Substitute of E-mart are the retail stores, the local retail stores also offer the products thatare offered by E-mart. Bargaining power of the suppliers of the supermarket is a disadvantage for theorganization. E-mart is forced to buy products that are of high cost from its suppliers.Bargaining power of the buyers forces the supermarket to give discount and offers, ifthey do not so, customers will switch to other supermarkets that offers discounts to the customers and they get value for the price they paid ( Tanwar, 2013).Tanwar, 2013According to the porter’smodel firms have, thereare two dimensions of thismodel, strategic advantageand strategic target.Competitive advantagesare of two types, costleadership, where thefirm’s gains advantagebecause of the costinvolved production thus making them to gain profit, another advantage is when the organizationDifferentiationCost leadershipFocusa)Differentiation focus, b) Cost focus c) Cost anddifferentiation focus.
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