Discussion on Organizational Development and Change

Please respond to this post and the question separately below. Thank you
1, Re:Module 3 DQ 1
Formulation of strategy according Daft (2013) occurs at corporate level, business level and at functional level. Porter suggested three formulation strategies that enables firm to overcome competition. I feel business exist for a purpose and what direction does management takes to address the strategy depends upon the vision and the goal. The business strategies are implemented after vision is generated and the feasibility of the vision is analyzed against business environment, the resources and the challenges. I feel that the strategy to address business competition is to attract customers either by distinguishing the product or service or by attracting customers by cost. But strategy to address business in non-profit organization may vary with the intent on which the organization was formed such as addressing social needs or addressing needs of children. The three types of business strategy according to Porter are: (1) differentiation, (2) cost leadership, (3) focus
In differentiation strategy the firm separates their product or services as exclusive one and makes a distinct position of the product and the firm within the industry. They differentiate themselves by distinct attributes that are exceptional or by a distinct technology applied to generate the product. Such as formulation of electric cars, I Pad, I phone very distinguished from other product but with higher prize.
In cost leadership the organization or firm sets out to become the low cost producer or provider in the industry. Firms use efficient methods for cost control and apply tight control to generate products in a cost effective manner than the competitors. Walmart world's largest retailer uses cost leadership business strategy.
In focus strategy the organization strategizes on targeting specific market, region, product, or buyer group etc. Focus strategy can be focused differentiation or focused cost strategy. Focused strategy could be applied as focuses cost leadership such as dollar tree business. Porter suggested that application of such strategy firmly situates the organization against its competitors. Cost focus means emphasizing cost-minimization within a focused market, and differentiation focus means pursuing strategic differentiation within a focused market. A clear strategic direction enables the firm to overcome challenge and enhance sustainability.
A new strategy used in recent market is known as integrated low-cost/differentiation strategy
this combination of differentiation with focus strategy is becoming more popular as global competition increases. Application this strategy give firms the ability to be adaptable to environmental changes, learn new skills and technologies, and generate products with distinct features that also is differentiated by cost.
Thus the customer realizes value based both on product features and a low price. Southwest Airlines is an example of a company who uses this strategy.
However, organizations that choose this strategy must be capable of consistently reducing costs while adding differentiated features.

Daft, R. L. (2013). New era of management (11th ed). Cengage learning
Porter, M. E. (1985). Competitive Advantage . The Free Press. New York.
Lecture note (n.d.). Retrieved from http://www(dot)albany(dot)edu/faculty/es8949/bmgt481/lecture4.html
2. ALL--Can cost, differentiation, or combination of the two strategies be sustained?
Hi All,

As you answer this interesting question, I also like to think if either cost, differentiation, or a combination of the two strategies can be sustained? If so, what other factors must exist within an organization to allow this to happen?

What do you all think?