Business Marketing: Competitive Strategy

Business Marketing: Competitive Strategy
Name:
Institution:
Course title:
Instructor:
Date:
Business Marketing: Competitive Strategy
Introduction
The Porter’s strategies are aimed at increasing the competitive advantage of an organization and increase profitability. The strategy is a long term project thus requires the organization to analyze the external environment to achieve set goals properly. The Porters strategies include differentiation, lost leadership, focus on cost leadership and focus on differentiation (Grant, 2010). Cost leadership is reducing the cost of products to attract more customers while differentiation is adding some features for the product to appear better than the competitor’s product. Focus strategy can either be focused on cost leadership or differentiation where a specific market segment is targeted by the organization for improved performance. Focus cost leadership reduced the cost to the organization to have a cost advantage in the market for targeted market segments. Focus differentiation is where the products are designed to satisfy the needs of a targeted market segment. Samsung is one of the leading mobile phone producers using differentiation strategy for a competitive advantage in the market.
Strategy Determines Value Chain Structure
Competitive strategy has an influence on the value chain structure of the organization in determining the activities which increase the worth of the organization. Samsung value chain activities are aimed at increasing the value of the shareholders and increasing the competitive edge in the electronic industry. The series of activities that are generating more income for the organization are first considered by Samsung. Porter indicates that the value chain activities to increase the profit margin of an organization include; inbound logistics, outbound logistics, operation, services, sales and marketing in the organ...