Rationale for Strategic Choice and Risk Identification analysis

Rationale for Strategic choice and Risk Identification
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According to Porter’s Generic Strategies, there are three strategies that a firm can employ in order to achieve its competitive advantage. They include; cost leadership, differentiation and scope (Walters, 2004). In order to attain differentiation, firms need to base their competitive advantage on factors such as customer service, unique style and product quality. Competitive advantage requires that the firm should define the breadth of its company’s target market and concentrate on meeting its specific needs. In order to attain cost leadership, the firm should aspire to minimize costs in production, marketing and in research. However, the firms should ensure excellent quality of its products while lowering the costs (Pearce & Robinson, 2009).
On the other hand, according to Traecy and Wiesema’s value disciplines techniques, for a firm to ensure sustained competitive advantages, it must embrace three disciplines. These include; product leadership, customer intimacy as well as operational excellence (Walters, 2004). To ensure op...