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Strategic management
Essay specific features
Written by:
Iris O
Date added:
December 27, 2015
Level:
University
Grade:
A
No of pages / words:
3 / 612
Was viewed:
3350 times
Rating of current essay:
Essay content:
31.).
With Michael Porter’s warning it can be argued that a firm will have a hard time competing for market share if a customer is cost sensitive and a firm’s product is high in value then they may need to keep reducing cost to compete. This will mean that the SIM firm will be forced to lower there profit margin or cost price to compete with other competitors...
displayed 300 characters
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Additionally if a firm has a product that has a perception of high value then the firm that is stuck in the middle will have a hard time making a profit if the keep reducing the price as they may have a hard time positioning there product effectively.
The literature from Powers and Hahn (2004) and O’Shaughnessy (1996) seems to support Michael Porter’s analysis that his three generic strategies that allow a firm to gain competitive advantage through cost leadership, differentiation, or a focus strategy will allow them achieve a competitive advantage strategy that cannot be easily imitated by other companies...
displayed 300 characters
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