Chapter 5 describes the five generic strategies originated by Michael Porter in 1980. Very few businesses pursue a single strategy; most use some combination, i.e. low-cost and differentiation. One thing that this week’s case portrays nicely is the evolution of the industry that may be reaching a mature stage. As industries evolve, successful strategies must evolve as well. Chapter 8 continues these ideas by digging deeper into corporate strategy, and Chapter 10 provides insight into execution.
Activity Instructions
For this case response, address the following:
• Examine the various strategies that are used in the case you select.
• What primary strategies are they using and how has their success been?
• How do you think the industry's maturation is affecting the various strategies employed?
• What strategic changes might likely be necessary as the industry continues to mature?
Sample Solution