PORTER’S GENERIC STRATEGIES

INTERNATIONAL STRATEGY

K.venkatesh

INDUSTRYWIDECOST

LEADERSHIPDIFFERENTATION

FOCUS

GENERIC STRATEGIES

PARTICULARLY SEGMENT

ONLY

C

OM

PETIT

IVE S

CO

PE

An integrated set of actions designed to produce or deliver goods or services at the lowest cost, relative to competitors with features that are acceptable to customers.

relatively standardized products

features acceptable to many customers

lowest competitive price

Cost leadership:

IT REQUIRES AN ORGANIZATION TO PURSUE:

Aggressive construction of efficient-scale facilities.

cost reduction from experience.

avoidance of marginal customer accounts.

cost minimization in areas like R&D, services , sales force , and advertising.

71%

6%

5%12%

0%6%

NOKIA SAMSUNG HTC RIM APPLE OTHERS

32%

31%

11%

10%

4%12%

SalesNOKIA

SAMSUNG

HTC

RIM

APPLE

OTHERS

MICROMAX

KARBON

SPICE

DIFFERENTIATIONValue provided by unique features and

value characteristics

CREATIVITY

CUSTOMIZING PRODUCTS TO SUIT

CONSUMER SPECIFIC REQUIREMENTS

MARKETING ABILITIES

RELIABILITY

Ways of differentiate:

High capacity Sporty & stylish

Lunched in 2001 association with Glenn Kerr Tokyo R&D 43% share of Indian 150cc segment

A focus strategy must exploit a narrow target’s differences from the balance of the industry by:

Isolating a particular buyer group

Isolating a unique segment of a product line

Concentrating on a particular geographic marketfinding their “niche”

FOCUS STRATEGIES

International Strategy

Sources of competitive advantage:

National Differences

Economies of Scale

Economies of Scope

MULTIDOMKESTIC STRATEGY

GLOBAL STRATEGY INTERNATIONAL STRATEGY TRANSNATIONAL STRATEGY

TYPES:

ORGANIZATIONAL CHARECTERISTIC

MULTIDOMESTIC

GLOBAL INTERNATIONAL

CONFIGURATION OF ASSETS&CAPABILITIES

Decentralized & nationally sufficient

Centralized & globally scaled

core competencies centralized

ROLE OF OVERSIES OPERATIONS

Sensing & exploiting local opportunities

Implementing parent company strategies

Adapting & leveraging parent company competences

DEVELOPMENT&DIFUSION OF KNOWLEDGE

Knowledge developed & retained with each unit

Knowledge developed & retained at the centre

Knowledge developed at the centre & transferred to overseas units

ENTRY MODE STRATEGIES:

EXPORTING

LICENSING

FRANCHISING

STRATEGIC ALLIANCES

JOINT VENTURE

WHOLLY OWNED SUBSIDIARY