BTEC HND Business Strategy Report: Porter's Strategies Analysis

This report provides an analysis of various business strategies, primarily focusing on Porter's generic strategies, including cost leadership, differentiation, and focus strategies. The report explains each strategy, its application, and the advantages it offers to businesses. It also explores Bowman's strategy clock, hybrid and diversification strategies. Furthermore, the report includes a critical analysis of these strategies, evaluating their strengths, weaknesses, and potential risks. The content is supported by references to academic sources. The report aims to provide a comprehensive understanding of strategic choices and their impact on business performance.

Business strategy

Table of Content
Porter generic strategies
Strategies
Critical analysis
References

Porter generic strategies
Cost leadership
 Cost leadership strategy refers as an lowest cost of operation in
manufacturing industry which makes company as cost leader and
supports to achieve competitive advantage (Arianty, 2018).
 This strategy helps organization to become cost leader industry by
offering low cost product as compared to competitors.
 It is followed by large industries to expand their business in global
market and gain competitive advantage.

Cont..
Differentiation strategy
 It is unique strategy which helps organization to develop different product or services that attract customer to
buy products rather than to go others.
 This strategy supports company to differentiate their brand name or their products from other competitors.
 This strategy is adopted by large scale business who offered their services in global market.
Focus strategy
 This strategy focuses on cost and differentiation as well which has main objectives to differentiate brand
name and gain competitive advantage to become the lowest cost leader.
 It adapts by small scale business to target their customers in the target market.

Cont..
Bowman's strategy Clock
 It refers as a framework which is applied for marketing analysis and determine competitive position of organization as
compared to competitors.
 Bowman's strategy framework is basically used to gain competitive advantage in term of cost advantage or differentiation
advantage (Arianty, 2018).
Hybrid strategy
 Hybrid strategy can be defined as a set of tactic which I used to deliver unique or combined cost and differentiation
strategy for developing a hybrid approach.
Diversification strategy
 It is another strategy which focus on new entering of products and new emerging market.
 Organization uses this strategy to expand their business in new market along with new product.

Strategies
 By analysing external and internal environment of organization through implemented framework and model
can interpreted that above strategies can support company to expand business and brand image as well.
 Cost leadership also good strategy which organization can follow to become the lowest cost leader in global
market.
 Tesco can adapt differentiation strategy because it can help to gain competitive advantage by improving
quality of product or their services.
 Cost focus strategy is another optional strategy which organization can use to target small market so that easy
to meet customer objectives.
 Diversification strategy can support company to enhance brand portfolio line which directly can lead
competitive advantage within company.

Critical analysis
 McKinsay 7's model which organisation applied to
understand internal environment is good.
 Diversification strategy is good to expand brand
image but it has risk as well because to introduce new
product ion new market can lead loss in company.
 Hybrid strategy can support organization to create
sustain competitive advantage in global market.

REFERENCES
 Yohannes, T.H. and Ayako, A.B., 2016. Top Management Team
Demographic Diversities, Generic Strategy and Firm
Performance in Marketing Social Research Association (MSRA)
in Kenya. Applied Finance and Accounting. 2(2). pp.30-45.
 Arianty, N., 2018. Porter Generic Model Strategy for Micro,
Small and Medium Enterprises (MSMs) in Dealing with ASEAN
Economic Community (AEC)–(Case Study Deli Serdang
Regency, North Sumatra–Indonesia).