The Five Generic Competitive Strategies

The Five Generic Competitive Strategies

Introduction

In today's modern business world, the competition among the organizations has increased to great extent. The organizations are trying to get the higher level of market share and to attain the competitive position upon the competitors. In order to attain their ultimate goals and objectives, the organizations develop and implement a number of strategies in their business processes. There are a number of competitive strategies that organizations implement in their business processes according to the business situations. The competitive strategies of the organizations assist the organizations in taking defensive actions against the existing as well new rivalry competitors.

The implementation of five generic strategies is also found to be very effective and efficient. The five generic strategies are based on the overall competitive strategy and are meant to derive the rest of the strategic actions that are undertaken by the organizations in order to attain the competitive position among the competitors. The following section aims at discussing in detail the five generic strategies that will allow us to understand that which strategy is efficient in which type of situations.

Discussion

Comparison of five generic strategies

The generic strategies are the business level strategies that are implemented in order to manage the business operation keeping in view the competitive situation in the market (Henry, A., 2008). The five generic strategies detail that what actions should the company take in order to compete within a certain type of business. The five generic strategies involve the following strategies that are shown in diagram.

Low cost provider strategy

This type of strategy is being implemented in the business market where there are a large number of competitors that offer similar products and services. The organizations, in such case implement low cost strategy in order to offer the low prices of the ...