Generic Strategy Model

GENERIC STRATEGY MODEL

Introduction

Porter's generic strategy model comprises of different strategies that arise from understanding the industrial structure and the reformation within the industry (Porter, 1980). According to this model, it is necessary for the company to analyze the market constraints and the competitor in order to sustain and retain its competitive advantage. Porter's model of competitive advantage has three generic strategies, the cost leadership, differentiation and the focus strategy (www.mindtools, 2013). However, this paper will identify and evaluate the generic strategy model based on three retail firms from the perspective of the Vice President of a different firm who is going to propose the effective generic strategy for his own company based on the competitor analysis.

Discussion

Three retail firms which will be highlighted in this paper are Wal-mart, Microsoft and Apple.

Wal-Mart

Wal-mart is the biggest retailer of the world, aiming to become the low price retailers of the world. According to the researchers, Wal-mart saves at least 15% on every shopping cart of the customers. Wal-mart has intended to expend and roll over their everyday low pricing strategy internationally to combat the differentiation in the prices. Wal-mart has a good defined structure that helps them achieve their aim (www.mindtools, 2013).

Microsoft

Microsoft is the largest IT industry with its roots incorporated around the globe. They have been serving as a market leader with their customer focused attitude. Their competitive advantage is the customer loyalty and product compliance which they deliver.

Apple

Apple is the leading company in the field of IT and software, with many competitors of its kind. Therefore, in order to sustain the market share, they have to come up with the unique and effective strategies (Porter, 1980). However, even in the intense age of competition in the industry, Apple has managed to lead the share of ...