MGT 125 Chapter Notes - Chapter 1: Human Capital, Swot Analysis
Document Summary
Subsequent to assessing the ve forces and conducting a swot analysis, managers may select a competitive strategy that ts the competitive strengths of the organisation. Porter: no rm can be successful by trying to be all things to people, but rather, must electa strategy that gives the organisation a competitive advantage. Three strategies are (depending on the organisation"s strength, core competencies and competitors weakness): Cost leadership: a competitive strategy in which the organisation is the lowest- cost producer in its industry. Aggressively search for ef ciencies in production, marketing and other areas of operation. Overhead is kept to a minimum, and the rm does everything to cut costs. Differentiation: a competitive strategy in which a company offers unique products that are widely valued by consumers. Sources of differentiation might be exceptionally high quality, extraordinary service, innovative design, technological capacity or an unusually positive brand image. Involves a cost advantage or differentiation advantage in a narrow segment or niche.
