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    Generic Strategies Thunecke

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    philsantos86
    This document summarizes Porter's generic strategies and provides examples from Germany's supermarket landscape. It discusses the three strategies of cost leadership, differentiation, and focus/niche. For cost leadership, it examines Aldi and Lidl's strategies of low prices and own brands. For differentiation, it analyzes REWE and Edeka's strategies of high quality products and branding. Finally, for focus strategy, it describes Alnatura's targeting of eco-conscious customers willing to pay more for organic food.

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    Generic Strategies Thunecke

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    philsantos86
    106 views12 pages
    This document summarizes Porter's generic strategies and provides examples from Germany's supermarket landscape. It discusses the three strategies of cost leadership, differentiation, and focus/niche. For cost leadership, it examines Aldi and Lidl's strategies of low prices and own brands. For differentiation, it analyzes REWE and Edeka's strategies of high quality products and branding. Finally, for focus strategy, it describes Alnatura's targeting of eco-conscious customers willing to pay more for organic food.

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    This document summarizes Porter's generic strategies and provides examples from Germany's supermarket landscape. It discusses the three strategies of cost leadership, differentiation, and focus/niche. For cost leadership, it examines Aldi and Lidl's strategies of low prices and own brands. For differentiation, it analyzes REWE and Edeka's strategies of high quality products and branding. Finally, for focus strategy, it describes Alnatura's targeting of eco-conscious customers willing to pay more for organic food.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    106 views12 pages

    Generic Strategies Thunecke

    Uploaded by

    philsantos86
    This document summarizes Porter's generic strategies and provides examples from Germany's supermarket landscape. It discusses the three strategies of cost leadership, differentiation, and focus/niche. For cost leadership, it examines Aldi and Lidl's strategies of low prices and own brands. For differentiation, it analyzes REWE and Edeka's strategies of high quality products and branding. Finally, for focus strategy, it describes Alnatura's targeting of eco-conscious customers willing to pay more for organic food.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    Competitive Advantage

    PORTERS GENERIC STRATEGIES, USING THE EXAMPLE OF GERMANYS SUPERMARKET LANDSCAPE


    Philipp Thunecke, General Management, 2. Semester

    Outline
    Introduction
    Generic Strategies Examples
    Philipp Thunecke, General Management, 2.Semester

    Introduction

    Strategies

    Examples

    Introduction
    Success in strategy rests upon Position in relation environment/competitors Porter argues that a firms strengths fall ultimately into one of two headings: Cost advantage or differentiation As a result: 1. Cost Leadership 2. Differentiation 3. Focus/Niche Strategy

    Philipp Thunecke, General Management, 2. Semsester

    Introduction

    Strategies

    Examples

    Generic Strategies

    Essa, 2012
    Philipp Thunecke, General Management, 2. Semester

    Introduction

    Strategies

    Examples

    Cost Leadership I
    Main Goal: Low cost relative to competitors (not at cost of quality/service)firm can compete on price and earn superior profits. Cost reductionFocus of the companys strategy Targets a broad market Especially beneficial: where customers are price sensitive

    Philipp Thunecke, General Management, 2. Semsester

    Introduction

    Strategies

    Examples

    Aldi

    Cost Leadership II

    Germanys discount supermarket pioneer Revenue of 25.53 bn. Euro (2011) Competitive Advantage Strategy low retail prices, strong own brands (+margin)

    Price Sensitive Customers

    Lidl
    Germanys other discount retailer Revenue of 29.70 bn. Euro Competitive Advantage Str. low retail prices, carries branded products Lidl lohnt sich (Lidl pays off)
    Philipp Thunecke, General Management, 2.Semester

    Introduction

    Strategies

    Examples

    Differentiation I
    Main Goal: Develop Products/Services that offer unique attributes that are valued by the customer Key: Consumers perceive the product to be different, better than that of the competitors Unique value allows the company to charge a premium for it

    Philipp Thunecke, General Management, 2.Semester

    Introduction

    Strategies

    Examples

    Differentiation II
    REWE
    Second biggest food retailer, 36.77 bn. Euros revenue (2011) Focused on offering high quality products Competitive Advantage Str.: high quality , broad range of products, clever advertising Jeden Tag ein bisschen besser (Every day a tad better)

    Edeka
    Biggest food retailer, 49.23 bn. Euros revenue (2011) Same strategy as REWE
    Philipp Thunecke, General Management, 2.Semester Gt

    Introduction

    Strategies

    Examples

    Focus/Niche Strategy I
    Main Goal: Concentration on a narrow segment/specific target audience Within Segment Either cost advantage/differentiation Premise: Focusing allows the company to satisfy the needs of the target group better and more efficient than competitors.

    Philipp Thunecke, General Management, 2.Semester

    Gttingen 28.05.2013

    Introduction

    Strategies

    Examples

    Focus/Niche Strategy II
    Alnatura
    Germanys biggest retailer for organic food, 516 m. euros revenue
    Specified target audienceeco-conscious customers, seeking high quality willing to pay a price premium

    Philipp Thunecke, General Management, 2.Semester

    Gttingen 28.05.2013

    Introduction

    Strategies

    Examples

    Retail Landscape at a glance

    Philipp Thunecke, General Management, 2.Semester

    Gttingen 28.05.2013

    If all youre trying to do is essentially the same thing as your rivals, then its unlikely that youll be very successful
    -Michael Porter-

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