Generic Strategy in Business

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Table of Contents

Generic strategy
Rationale for the selected generic strategies
Vision and mission
Business level strategies
Marketing approach
References

It is fundamental for an organization comprehend the nature of its resources, which include the company’s labor, competencies and ability, aspects that form an organization’s environment (microenvironment). One can understand resources as the belongings of a company, which facilitate the production process. Competencies, equipments, capital, and skilled labor are some of the resources at the disposal for the company.

It is necessary for the resources to be free from any possibility of imitation. However, looking at the fitness industry, resources such as skilled personnel will play a significant role in providing quality services. Consequently, this will significantly ensure a continuous maximum customer satisfaction.

Such satisfaction, if known to other willing consumers, the number of customers would increase significantly. This translates to tremendous success to the new business or firm.

Generic strategy

An organization can compete using various possible ways. However, the option chosen on the business level strategy is what determines the intended competition in the market. This is because business level strategy acts as the connection between the organization’s strategies and its desired long-term goals.

The company’s vision and its desired position in the market are often determined by the chosen strategies. However, a thorough assessment of various aspects such as differentiation, focused cost leadership, cost leadership must be done, in order to come up with excellent business level strategies.

Rationale for the selected generic strategies

In the fitness industry, the focus is on a wide-range of clients. Tremendous efforts should be dedicated in providing services to a variety of customers having dissimilar demographics and from diverse groups. The excellent implementation of differentiation enhances market competition thus promoting the company services with prosperity as the final product.

Such a strategy signifies the distinctiveness of the Mini active. The features of Mini brand are not far from the ones of the Lexus brand, a Toyota brand (Hanson et al 2008). Despite the risks associated with cost leadership, current competencies and technologies help in avoiding imitations, which improves the competitive edge of the organization.

Vision and mission

The developed resource based model flow chart act connects certain elements that define an industry. After an extensive assessment of fitness and other environmental aspects, the company has spotted a significant industry capable of having significant returns.

Therefore, by excellently understanding the various aspects regarding the company’s internal environment significantly assists in establishing a strong foundation for conquering the market. This places an organization in a perfect position to carry out a value chain analysis, which singles out competencies capable of building a desirable value of products or services.

The creation of competencies should be a continuous process, since they add value to the products or services without incurring any additional expenses. Eventually, this would promote the services of the club as well as assist in maintain lesser charges for services offered.

The organization can enter fitness market in dissimilar forms, either by making an acquisition or by internally developing the organization (Lee et al 2010). Making acquisition can be by purchasing an already established facility. However, this is not the approach taken by BMW; instead, it has employed the internal development approach (Lee et al 2010). The organization is extending its services and brand in the form of a “mini active.”

Business level strategies

In order for an organization to a stronger competitive edge or advantage, it must employ several actions that are geared towards their intended goal. These sets of actions referred to as business level strategies. These designed actions or strategies consist of a number of aspects such as differentiation, cost leadership, and focused differentiation.

The excellent employment of any of these aspects assures a stronger barrier for other competitors who may pose significant threats to the company. Moreover, it helps in preventing any form of replication or imitation of the company’s products or services (Hanson et al 2008).

Marketing approach

It is undeniable that an organization with established segments in the market, often promote their brands in terms of quality. This reminds us the fact that clients are the individual behind the success of any business strategy. The clients’ continuous use of the products or services acts as the primary basis in determining the effectiveness of the employed competencies or strategies.

References

Hanson, D, Dowling, P, Hitt, M, Ireland, R, & Hoskisson, R 2008, Strategic Management: Competitiveness and Globalization, Third edn, Asia Pacific, Australia.

Lee, G, Lieberman, M 2010, Acquisition Internal Development as modes of market entry, Strategic Management Journal, vol. 31, no.3, pp. 140-158

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