THE FIVE GENERIC COMPETITIVE STRATEGIES In this chapter, we build on past information by discussing ways in which firms formulate business strategies...

THE FIVE GENERIC COMPETITIVE STRATEGIES

In this chapter, we build on past information by discussing ways in which firms formulate business strategies that capitalize on their resources and capabilities to exploit opportunities in their competitive environments. As we have seen, business strategy refers to the competitive moves and business approaches that a firm makes in an effort to establish its competitive posture.

As a rule, competitive position can be established in many different ways, and the task of finding the best configuration of positions falls to strategic managers. Deciding which generic strategy to employ is perhaps the most important strategic commitment a company makes - it tends to drive the rest of the strategic actions a company decides to undertake, and it sets the whole tone for the pursuit of a competitive advantage over rivals.

Your assignment this week:

1) Perform an Internet search for "low-cost provider." Identify three (3) companies that are pursuing a low-cost strategy in their respective industries, and explain how these firms achieve competitive advantage.

2) Perform an Internet search for "best-cost provider," and locate three (3) companies that indicate they are employing a best-cost provider strategy. Describe in detail the specific characteristics that make each of these firms a best-cost provider.

3) Explore Krispy Kreme's Web site at www.krispykreme.com, and conduct any

additional research you deem necessary to better understand the company's vision, mission, and approach. What activities contribute to Krispy Kreme's differentiation strategy and the unique position in the industry that Krispy Kreme has achieved?

4) Which of the five generic competitive strategies do you think each of the following companies is employing (do whatever research at the various company Web sites that might be needed to arrive at, and support, your answer)? Fully justify your reasoning for each.

a.   GameStop

b.   Airbnb

c.   Wayfair

d.   ULTA Beauty

e.   Chipotle

f.     Macy's