Organization's Generic and Diversification Strategies
Every organization has its own strategies and practices that it follows to achieve its goals and objectives. This paper aims to examine the generic and diversification strategies, international moves, ethics policies, social responsibility, and environmental sustainability practices of the organization I am representing.
The generic strategy of an organization denotes the overarching approach taken to achieve various goals and gain a competitive advantage in the marketplace. The three generic strategies identified by Michael Porter include cost leadership, differentiation, and focus.
- Cost leadership: This strategy aims to be the low-cost producer in an industry while maintaining acceptable quality. The organization achieves this by optimizing its production processes, reducing overhead costs, and negotiating favorable deals with suppliers.
- Differentiation: This strategy focuses on creating unique products or services that are perceived as superior by customers. Organizations that pursue differentiation aim to stand out from their competitors by offering features, benefits, or attributes that are not found elsewhere.
- Focus: This strategy involves targeting a specific market segment, customer group, or product line and tailoring the organization's activities to serve that segment or group effectively. The organization may use either a cost leadership or differentiation approach within the focused market.
It's important to note that organizations can also adopt a hybrid approach that combines elements of more than one generic strategy.
The organization I am focusing on is a multinational company that operates in the technology industry. The company is known for its innovative products and services in consumer electronics, computers, and software programs. It has a strong global presence with operations in multiple countries, including the United States, Europe, Asia, and the Middle East.
Your Organization's Generic Strategy or Strategies
The company uses a differentiation approach as its generic strategy. The firm differentiates its products and services from those of competitors through innovation, design, quality, and customer service. The company's products are known for high quality, innovative design, and user-friendliness. The organization invests heavily in research and development to devise new and innovative products that meet customer needs and preferences.
Any Diversification Strategies the Organization Pursues
The company has diversified its product portfolio to include a range of offerings. This product portfolio includes smartphones, tablets, laptops, desktops, software, and other products. The company has also expanded its business operations to include services such as cloud computing, digital media, and online services. This diversification strategy has helped the firm reduce its dependence on a single product or service, penetrate into new markets, and generate more sales revenues.
International Moves Made by the Organization
The company has a strong global presence and operates in multiple countries across the world. The firm conducts operations in different countries through subsidiaries, joint ventures, and strategic partnerships. It has also invested heavily in research and development centers in different parts of the world to exploit the local talent and expertise. The organization’s international moves have enabled it to expand its global footprint and enter the new markets.
social Responsibility and Environmental Sustainability Practices
The company has a strong ethical policy that emphasizes the importance of honesty, integrity, and transparency in all business activities. The firm’s ethical policy also emphasizes complying with all applicable laws and regulations to preserve the environment, prevent pollution, mitigate legal risks, and improve people’s lives. The organization has a dedicated ethics and compliance team to address the needs and concerns of all employees and stakeholders.
Edwards, J. (2014). Mastering strategic management. BCcampus. https://opentextbc.ca/strategicmanagement/chapter/diversification-strategies/