What skills should a person have for managing a business unit following a differentiation strategy? Why?© BrainMass Inc. brainmass.com October 1, 2020, 8:47 pm ad1c9bdddf
Skills desired for managing a business unit following a differentiation strategy
What skills should a person have for managing a business unit following a differentiation strategy? Why?
Harvard Business School's Michael Porter developed a framework of generic strategies that can be applied to strategies for various products and services, or the individual business-level strategies within a corporate portfolio. The strategies are (1) overall cost leadership, (2) differentiation, and (3) focus on a particular market niche. Thus According to the Porter the competitive strategies are:
Cost Leadership, Differentiation, Focus Cost Leadership, and Focus Differentiation
The scope of a firm's activities affects the competitive advantage of the firm. Narrow scope (focus) can create competitive advantage through tailoring/adapting the value chain, and how broader scope can enhance competitive advantage through the exploitation of interrelationships among the value chains that serve different segments, industries or geographic areas. (Simonsays)
The generic strategies provide guidance to the business units in designing incentive systems, control procedures, operations, and interactions with suppliers and buyers, and with making other product decisions.
Skills for pursuing differentiation strategy
Both cost advantages and ...
This solution of 703 words lists the skills for pursuing a differentiation strategy in managing a business and it also explains the Porter Strategies with real-life examples. All references used are included.