Michael Porter’s strategy focuses on five strategies, that include:
competition in the industry, potential of new entrants into the industry,
power of suppliers, power of customers and threat of substitute
products. (Scott, 2020) The five forces should be used with the
strength and weakness analysis. This will determine what threats the
company face currently and in the future. The opportunities that the
company have to expand to other countries. It will give the
information about the newly developed line for upscale clients. It will
also identify the problems about the efficient of the company’s plant.
B. Select the best strategy for the Smithfield company to pursue from
the two strategies Porter presents in his model and explain why that
particular strategy is better than the alternative. aa
Low Price Leadership Strategy “the strategy is to produce (or purchase)
comparable value goods or services at a lower cost than its
competitors. The lower cost will attract the majority of customers and
allow it to profit by the volume of goods sold” (Lumen, n.d.). They
must include Differentiation Leadership Strategy to become successful
in the furniture business. That will ensure that the customers will
support them while paying high prices.
C. Using this week's course readings, assuming Joan Smithfield accepts
your recommendation, what is the next action she should take to
determine if your recommendation is correct? Be specific. Use in-text
citations and list references from course readings as required.
“The competitive advantage theory suggests that states and businesses
should pursue policies that create high-quality goods to sell at high
prices in the market. Porter emphasizes productivity growth as the
focus of national strategies” (Lumen, n.d.). Using the recommended
strategy, the company will grow tremendously. The buyers will buy the
products even at a high price because they are not price sensitive.
Also, it will force out the rivals because they will not be able to keep
up with the company.
References
https://courses.lumenlearning.com/wmopen-
principlesofmanagement/chapter/stages-and-types-of-strategy/
Scott, G., 2020.
Porter's 5 Forces
. [online] Investopedia. Available at:
<https://www.investopedia.com/terms/p/porter.asp>.
