STRATEGIC MANAGEMENT FIVE GENERIC COMPETITIVE STRATEGIES
FIVE GENERIC COMPETITIVE STRATEGIES

FIVE GENERIC COMPETITIVE STRATEGIES

3/4. Market focused strategy…cost and nicheStrategic inputs (essentially the same as low cost provider strategy):Optimize economies of scalePurchase in volume, JIT, keep raw materials costs lowUtilize bargaining powerLow cost inputsReduce materials handling and shipping costsAdvanced production technology and process designsOffer incentivesMinimize operational and administrative staff and costMerge support systems (ordering, procurement, billing, etc.)Pursue supply chain efficiency, i.e. limit ‘middle men’Efficient utilization of resources (plant, materials, human capital)Vertical integrationOperate at full capacity (full advantage of fixed costs)Efficient communications systems and information technologyOutsource where practicableSell direct to customer (where practicable)Continuous improvementContinuous learning