Section 6 Lecture Notes for Chapter 5 369 Chapter Chapter Summary 5 The Five Generic Competitive Strategies Chapter Five describes the five basic competitive strategy options – which of the five to employ is a company’s first and foremost choice in crafting overall strategy and beginning its quest for competitive advantage. Lecture Outline I. Introduction 1. There are several basic approaches to competing successfully and gaining a competitive advantage‚ but they all involve giving buyers what
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analysis of airlines by using porter’s five forces Threats of Substitutes (Low) Product that able to represent other product function can be defined as substitute product (Wheelen and Hunger‚ 2002). Currently‚ there are no perfect substitutes for airline service‚ as airline service has the best range of destination‚ time-efficient and convenience. However‚ the fact that trains and air-transports are substitute is true‚ but the threat will only be high if it’s applied in domestic travel. Currently
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Emirates is a company in the field of aviation‚ the first flight routes emirates was on October 25‚ 1985 from Dubai with aircraft leased Boeing 737 and Airbus 300 B4. This company has a goal of quality not quantity. Emirates airline has now become very influential company in the world and is a well-known airline (Emirates‚ 2013). Emirates is a company that owned by the Dubai government. Emirates now have become company on an international scale‚ a lot of investment and sponsor conducted and supported
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* Identify the generic strategy adopted by a product or division of your firm and also a major competitor. Attempt to justify your answer by comparing with the industry average benchmarks (Price and Cost data). * Draw a value chain of your firm‚ mentioning key points of functional fit/ misfit with the above generic strategy. E.g. how will Operations /marketing support the identified strategy. Make recommendations for any change needed. ------------------------------------------------- 1a
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Business Generic A firm positions itself by leveraging its strengths. Michael Porter has argues that a firm’s strengths ultimately fall into one of two headings: cost advantage and differentiation which are applied at the business unit level. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them‚ lead to three generic strategies for achieving above average performance in an industry: cost leadership‚ differentiation‚ and focus
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Assignment 1 Strategy The article I read was‚ What is Strategy? By Michael Porter. In this article Porter talks about the abilities to set objectives‚ facilitate resources and the ability to target the right customers. Porter goes onto talk about operational efficiency. He says that operational efficiency is basically preforming similar tasks better than your rivals in the market. He emphases being different than your rival‚ don’t try to be better and always out do them‚ be different and unique
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Delta Airlines Board of Directors Presentation October 18‚ 2013 Consultants: General Overview of Delta Airlines Strategy DELTA’S CURRENT STRATEGY COMPANY’S SANDBOX High rivalry makes industry unattractive Profitability increasing‚ but still below cost of capital Consolidation trend has reduced rivals helping profits Trainer refinery acquisition: using vertical integration to address Delta’s largest expense Metrics of improving flight completions‚ on-time arrival rate and
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any differences between them: (a) Porter’s Generic Strategies (b) The Strategy Clock Purpose of Porter’s Generic Strategies and Bowman’s Strategic Clock are both aimed to help companies understand how they compete in the marketplace. Base on the different combinations of price and perceived value‚ companies should know how to choose a position of competitive advantage that understanding the company’s competencies. Application of Generic Strategies is focus on three ways in which a company could
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Ryan air‚ an Irish airline started in 1985 by Ryan family with a capital share of £1 and a staff of 25. Over the past few years the company has shown tremendous ontogeny. Indeed it is Europe’s largest low cost carrier and fastest growing airlines. Currently it’s operating more than 1‚500 flights every day from over 50 bases and around 1400 low fare routes across 28 countries which connect 165 destinations. Now I am going to discuss Ryan air’s (RA) current strategic position by analysing its macro
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Porters 5 forces Virgin Australia Threat of new entrants – The airline industry has been around for over 100 years and due to large capital requirements and overhead (high cost of planes)‚ the industry would not be greatly affected by new entrants and therefore the threat of new entrants is high. With low operating margins and high initial investment‚ a high market share is needed to ensure full flights (maximizing profits on each flight). This would be difficult for a new entrant. Industry
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