Strategic Choise Essay Example | Topics and Well Written Essays - 1250 words

Strategic Choise - Essay fashion stumperPorters Generic Strategies model (Porter, 1985) illustrated that competitive scope is to be either, focused on the whole market, or a narrow segment of the available market. In addition, the model emphasised that only two effective merchandising strategies subsisted lowest product courts or noble- sensed value by the client (differentiation) (Macmillan & Tampoe, 2000). The model depicts three generic wine strategies 1) cost leaders 2) differentiation and 3) focus on a target market. The least attractive schema is one that takes the middle ground between two options. For example, British Airways (BA) uses a differentiation dodge (Johnson & Scholes, 1999). The BA Way business strategy actively engages with employees, shareholders, customers and the community (Johnson & Scholes, 1999). During 2004-2005 BA experienced an enlarge of 3.3% in revenue. In contrast, Adria Airlines Customer relationship Management strategy focuses on quality and the personal touch, according to Porters model would be focusing on a target market (Adria Airways, 2004). In contrast to Porters model Adria experienced an increase in production and administrative costs of 12% during 2003-2004 (Adria Airways, 2004). Both airlines are concerned with only a narrow segment of the airline market, yet neither benefited substantially from their strategic choice.Bowmans Strategy Clock model (Macmillan & Tampoe, 2000) is comparable to Porters model in that he also categorised competitive strategy into cost leadership or degree of differentiation (Johnson & Scholes, 1999, Macmillan & Tampoe, 2000). However, Bowmans model extended Porters by incorporating a hybrid strategy that equal an optimal balance between perceived customer value and price. This provides an organisation with three broad strategies that exist on a continuum 1) low cost and low value as perceived by the customer (i.e., generic brands) 2) good value products that find balance between pri ce and value and 3) high cost and high perceived value items (i.e., luxury goods) (Macmillan & Tampoe, 2000). Bowmans model is much more reflective of the 21st speed of light marketing environment, in that many organisations specialise in providing products and services that blend low cost and high differentiation (Macmillan & Tampoe, 2000). For example, British Airways could be considered to be using the hybrid strategy of Bowmans, as its business strategy seeks to lower costs yet differentiate itself by way of increasing its engagement with stakeholders (British Airways, 2005). According to Porters model, this would be a weak strategy as it combines two generic strategies (i.e., cost leadership and differentiation). Adria Airlines Customer Relationship Management strategy (Adria Airways, 2004), could be considered to be in Bowmans category of focused differentiation, due to its provision of seasonal charter services, and personal high quality services. So that the higher price o f their product also has perceived added value for a select target market. This category reflects Porters generic category of differentiated focus for a narrow competitive strat