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    Assignment No 6 (BP)

    Uploaded by

    Bernadette Aniceto
    The document discusses how industry structure impacts competitive strategy choices and notes that certain strategies like focus strategies are more likely to succeed in fragmented industries. It also explains that major sources of competitive advantage for a cost leadership strategy include efficient design, production and marketing as well as differentiation through quality, features or service. Finally, it discusses how firms can develop competitive advantages internally through their competitive scope or target market, and the importance of strategic alliances for mutual economic gain between companies.

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    Assignment No 6 (BP)

    Uploaded by

    Bernadette Aniceto
    226 views2 pages
    The document discusses how industry structure impacts competitive strategy choices and notes that certain strategies like focus strategies are more likely to succeed in fragmented industries. It also explains that major sources of competitive advantage for a cost leadership strategy include efficient design, production and marketing as well as differentiation through quality, features or service. Finally, it discusses how firms can develop competitive advantages internally through their competitive scope or target market, and the importance of strategic alliances for mutual economic gain between companies.

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    BS ENTREPRENEURSHIP

    Original Title

    Assignment No 6(BP)

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    The document discusses how industry structure impacts competitive strategy choices and notes that certain strategies like focus strategies are more likely to succeed in fragmented industries. It also explains that major sources of competitive advantage for a cost leadership strategy include efficient design, production and marketing as well as differentiation through quality, features or service. Finally, it discusses how firms can develop competitive advantages internally through their competitive scope or target market, and the importance of strategic alliances for mutual economic gain between companies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    226 views2 pages

    Assignment No 6 (BP)

    Uploaded by

    Bernadette Aniceto
    The document discusses how industry structure impacts competitive strategy choices and notes that certain strategies like focus strategies are more likely to succeed in fragmented industries. It also explains that major sources of competitive advantage for a cost leadership strategy include efficient design, production and marketing as well as differentiation through quality, features or service. Finally, it discusses how firms can develop competitive advantages internally through their competitive scope or target market, and the importance of strategic alliances for mutual economic gain between companies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Assignment No.

    Questions to Answer:

    1. Discuss how industry structure impacts competitive strategy choices.

    Answer: Although each of Porter’s generic competitive strategies may be used in any
    industry, certain strategies are more likely to succeed depending upon the type of
    industry. In a fragmented industry, for example, where many small- and medium-sized
    local companies compete for relatively small shares of the total market, focus strategies
    will likely predominate. Fragmented industries are typical for products in the early
    stages of their life cycles. If few economies are to be gained through size, no large firms
    will emerge and entry barriers will be low—allowing a stream of new entrants into the
    industry.

    2. What are the major sources of competitive advantages of an organization that can be
    effectively developed to support a cost leadership strategy for competing in the market?

    Answer:
     Cost leadership is the ability of a company or a business unit to design, produce,
    and market a comparable product or service more efficiently than its
    competitors.
     Differentiation is the ability of a company to provide unique and superior value
    to the buyer. This may include areas such as product quality, special features, or
    after sale service.
     Focus is the ability of a company to provide unique and superior value to a
    particular buyer group, segment of the market line, or geographic market.

    3. How can an organization develop a competitive advantage internally without the help of
    outsiders?

    Answer: Porter proposed that a firm’s competitive advantage in an industry is


    determined by its competitive scope—that is, the breadth of the company’s or business
    unit’s target market.
    4. Explain the importance of strategic alliances?

    Answer: A strategic alliance is a long-term cooperative arrangement between two or


    more independent firms or business units that engage in business activities for mutual
    economic gain. Alliances between companies or business units have become a fact of
    life in modern business. Each of the top 500 global business firms now averages 60
    major alliances. Some alliances are very short term, only lasting long enough for one
    partner to establish a beachhead in a new market. Over time, conflicts over objectives
    and control often develop among the partners. For these and other reasons, around half
    of all alliances (including international alliances) perform unsatisfactorily. Others are
    more long-lasting and may even be preludes to full mergers between companies.

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