porters generic strategies

Question 1

what is porters theory?

Answer 1

used to explain how a business could manage change as they attempt to gain a competitive advantage. contemporary approach to strategic management.

Question 2

differentiation strategy

Answer 2

where a business looks to offer something unique to its consumers. this allows the business to stand out.

Question 3

strengths of differentiation

Answer 3

-business can change product to premium price

Question 4

weaknesses of differentiation

Answer 4

• businesses can incur extra costs

- other businesses might copy

Question 5

lower cost strategy

Answer 5

a business looks to gain a competitive advantage by reducing its costs in both primary and support activities. business will look at all their activities and determined where costs can be reduced.

Question 6

strengths of lower cost strategy

Answer 6

-lowest costs increase profits and market share

Question 7

weaknesses of lower cost strategy

Answer 7

companies may lose track of why they lowered costs because it comes at the expense of other vital factors.

Question 8

how to choose the right generic strategy

Answer 8

1-conduct swot analysis
2-use five force analysis
3-compare both analysis

Question 9

five competitive forces of porter

Answer 9

supplier power
buyer power
threat of substitutes
threat of new entrants
competitive rivalry

Question 10

similarities between Lewin and porter

Answer 10

• both theories are used to make change

- both focus on forces and approaches to transform

Question 11

differences between Lewin and porter

Answer 11

Lewin is a general approach where’s porter is more specific

porter is proactive, Lewin is reactive