Bang & Olefsum Strategic Management: An Analysis Using Porter's Model

This essay provides an analysis of Bang & Olefsum's strategic management approach through the lens of Porter's Generic Model. It begins by explaining Porter's model, which includes cost leadership, differentiation strategy, and focus strategies (cost focus and differentiation focus). The essay then applies these concepts to Bang & Olefsum, a supermarket chain, discussing how the company can leverage these strategies to gain a competitive advantage. It highlights the importance of cost leadership through minimizing costs and increasing profits, differentiation through unique products and services, and cost focus by concentrating on niche markets and understanding market dynamics. The analysis concludes by emphasizing how Bang & Olefsum can effectively target customers and develop a strategic plan using these approaches to enhance sales and profitability.

S T R A T E G I C M A N A G E M E N T
B A N G & O L E F S U M

INTRODUCTION
• There is explanation about the Porter’s generic model in context of Bang
and Olefsum company.

PORTER’S GENERIC MODEL
• According to Porter, there are four types of strategies followed by different
companies in their business-strategy. Some of these are cost leadership,
differentiation, focus and this is divided into differentiation focus and cost
focus. This model is explained below -

CONT…
Generic model of porter: Bang and Olefsum is an organisation that runs
supermarket chain and offers different products at the same place. The
generic model of Porter has basic three major components that gives right
direction to the organisation in dealing with current situation of market. The
three components of this model are helpful for company to know how to
target customers effectively.

COST GENERIC FACTORS
• Cost Leadership
• Differentiation Strategy
• Focus

GENERIC MODEL OF
PORTER
Bang and Olefsum is an organisation that runs supermarket chain and offers
different products at the same place. The generic model of Porter has basic
three major components that gives right direction to the organisation in
dealing with current situation of market. The three components of this model
are helpful for company to know how to target customers effectively. A
strategic plan is developed by company for getting competitive advantage in
market.

COST LEADERSHIP
Porter's generic strategies are ways of developing competitive advantage.
There are basically two types of ways of attaining cost leadership strategy –
by increasing profits and minimising costs while charging industry average
prices.

DIFFERENTIATION
STRATEGY
This includes making products and services different from other competitors.
In order to make success of this differentiation strategy, Bang and Olefsum
need to conduct effective and strong research. They must deliver high quality
services and products.

COST FOCUS
Companies that use Focus strategies concentrate on particular niche markets. This
includes understanding of market dynamics. In this way, unique and the unique
needs of customers within it, develop uniquely low-cost or well-specified products
for the market. Because they serve customers in their market uniquely well, they
tend to build strong brand loyalty amongst their customers. This makes their
particular market segment less attractive to competitors

CONT…
• Cost focus is adopted by Bang and Olefsum for focussing on price of
products and services. It focuses on decreasing cost of products. This
company focuses on minimizing cost in order to maintain profit margin and
sales. In this way, Morison is able to increase the sales and profit of the
company.

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