As a newly promoted vice president (VP), your chief executive officer (CEO) has invited you to participate in this year's upcoming strategic planning session. You know that this will be high-level type planning versus the more routine type planning you have done in the past. To prepare for this, you have done some research and noted the generic strategies model (cost leadership, differentiation, and focus) in a lot of the strategic-planning literature.
Using the Generic Strategies Model, complete the following requirements:
- Identify and describe 3 retail firms.
- Note which of the 3 broad strategies that each firm seems to have chosen (low-cost producer, niche supplier, or differentiation strategy).
- Identify at least 2 specific tactics that each of the three employ to support your opinion of their method of competing.
- Do the tactics you cited seem to be working? On what evidence can you base your answer?
The Generic Strategic Model:
This is a model that was proposed by Michael Porters. The strategic model holds the techniques that can be used by organizations to ensure that they attain their competitive advantage in the target market. Through this, the market shares of the organization are attained to create high profit margins for the corporation. The two sources of the competitive edge will be based on two variables; the sources of competitive advantage and the competitive scope of the market (Generic Strategies, n.d).
Description of Three Retail Firms:
The three retail firms that are selected are; Wal-Mart stores, Aeropostale Clothing Stores and the Advanced Auto parts Company (AAP). The Wal-Mart store is the highest ranked retail store that has the policy of maintaining their price levels at all time low range. The organization holds all household suppliers, office equipments and other diverse commodities. The Aeropostale ...
This solution uses the Generic Strategies Model to identify and describe 3 retail firms, determine which broad strategy that each firm has chosen, identifies specific tactics they employ to support their method of competing, as well as discusses whether these tactics seem to be working.