Strategic Analysis and Chance to Choose Essay Example | Topics and Well Written Essays - 6750 words

Strategic Analysis and Chance to Choose - Essay ExampleMichael Porter (1985) further proposed that organisations pursingpursuing both live leading and contrastiveiation strategies have in fact no competitive edge at all. and Rather, he asserts they are in fact stuck in the put between both cost leadership and differentiation strategies resulting inwith no clear outline for competitive advantage.Although I have chosenWhile the two chosen organisations within my diligence I feel meet the criteria for this report, one organisation following cost leadership strategy whilst and the other following differentiation strategy, I feel sensibly reluctant to agree that an organisations within todays business environment are arguably not entirely restricted by Michaels Porters proposed strategies on competitive advantage.The two organisations chosen for this report compete within the computer aided manufacturing software industry. EdgeCAM by its name is developed and distributed directly by Pathtrace Limited and is a third propagation computer aided and manufacturing software package., its counter part within competitive analysis is SolidCAM is also computer aided manufacturing (CAM) solution.Porter proposed that along with cost leadership and ... of Ccost leadership, differentiation and focus organisations strategies can achieve competitive advantage for an organisation, according to Porter. Organisations following cost leadership strategy typically involve are companieys assiduous inthat delivering their product(s) and at the lowest case level acceptable by to buyers that will lead them to cost advantage over their competitors. Cost leadership is more almost how the company can leverage its product within its market through effective ongoing cost efficiencies within the organisation, backed-up by strong management concentrating on fully utilising the companysir resources to their fullest.In contrast, organisations following a differentiation strategy seemingly are willing to actually add costs in order to increaseadd the shelter through by which they differentiateing their products. that will appeal to given series of buyers within the market. This could in fact be throughSuch cost increases could be aimed at achieving superior quality or performance of the product, or less intangible items like post-after sales service. Porters differentiation strategy in similar respects followsis similar to branding strategy in which the strategythat relies on promoting distinctive brand elements of the product. (Kotler P and Keller K, Marketing Management P.296)Porters also proposed a third strategy of called focus. Thise theory behind this isholds that customers have very different products or service needs, and therefore can be grouped together to form narrow niches within the industry. These segments or groups are then targeted in a. unlike cost and differentiation strategies the focus strategies is similar manner to the