Porter's Generic Strategies and Firm Performance
The competitive environment is an external impact factor that can be examined using Michael Porter's strategy. In this resource, locate Porter's three generic strategies impacting a firm's performance. Create a chart, and then choose one of the brands you have examined in the branding section. Apply these options to each brand and conclude which is the best match. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
Research objective
After Porter's generic strategies are read and analyzed, strategists fall into confusion that which strategy should be pursued or which strategy to implement in their organization to provide better performance for their firms. Even though Porter has analyzed carefully the industry environment, competitive forces, and competitive strategies that should be built by firms to achieve competitive advantages, it lacks on presenting strategies by quantitative results, identifying how much "separately" each of the three generic strategies impacts on firm performance. As these data are missing, strategists may pursue the wrong strategy without knowing that in the long-term periods they are destructing their industry and their business as well. Therefore, to fill this gap in the literature, the objective of this study is to use the quantitative method to measure the relationship between each of the three Porter's generic strategies with firm performance, in order to enrich the existing literature and to bring something new and clearer strategy for strategists on pursuing Porter's generic strategies.
The research aim is to analyze the possible influence by implementating Porter's generic strategies: (a) low-cost strategy; (b) differentiation strategy; and (c) focus strategy in the firm performance of the production sector, and also to find out which of these three strategies is more significant with increasing firm performance.