Summary
Summary Porters Generic Strategies Theory A-level Business Noes (A-Grade Notes)
- Institution
- AQA
Porters Generic Strategies Theory AQA A-level Business Notes: -Includes the Model -Includes Company Examples
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-pornhub.ssggenneerri.es#raaEteeggiieesI-
Challenge facing marketing strategy
→ find a
way of achieving a suitable competitive advantage over other products $ firms in the market .
Porter's Approach
Suggested 2 overall business strategies to
gain competitive advantage
- -
.
- Porter
argued that differentiation & low cost are effective
strategies .
Compete advantage Advantage
-
over competitors -
offering consumers greater value
by
t
prices / T benefits § services to
charge 4 price .
Not clear what business stands for
✓ is
stuck in the middle (lacking product differentiation 13 cost t
y
It
- Morrisons WHSmith McDonalds
, ,
Low cost
Differentiation NeMidde
LOW Cost
allowing to exploit economies of
become the lowest cost scale
operator production large scale
- - - o on - .
↳ Advantage -
importance if selling prices
-
are similar ,
lowest cost operator = T profits / offer lowest prices (
gain market
share)
Suitable markets -
standard product Kittle product differentiation / branding relatively unimportant .
gateways
.
g.hppikpeldtucfeuaynresfotieancywwco.to ]
: Aldi , Poundland
Ryanair .
.
capacity utilisation .
Lean production methods and culture
Access to the widest D most important distribution channels
Large scale economies .
=
Differentiation -
offer product different from competition which the W Stoner values .
mgm"fs÷÷g:÷in
Ways to achieve differentiation :
ismranroifngn.Y.Y-anYYojfuffIYY.es Eg apple.ayson.co#aooteee
:
•
Wide distribution -
(essential item stocked by retailers)
•
Sustained promotion -
f advertising 1 sponsorship)
]
Hybrid strategies -
Differentiation end low costs
t
Value
proposition Good
quality 13 prices,
=
jf mmiarhlfe.is
Hat packed .
made in china .
Differentiation unique
design product range targeting ( mainly)
young to middle class
-
, ,
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