ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Business Management => Topic started by: Elayg6 on October 10, 2017, 07:37:10 pm

Title: PSG
Post by: Elayg6 on October 10, 2017, 07:37:10 pm

Hi, just need help answering the following question:
"Why do we need Porters Generic Strategies during change?"

Title: Re: PSG
Post by: Jigsaw on October 10, 2017, 08:46:40 pm

Hey,

So Porter's Generic Strategies allows a business to ensure change is successful, through communicating to the business which general strategy (either lower cost or differentiation) will be best for a business to have a competitive advantage. Through evaluating the 5 competitive forces set out by Porter (Entry of new competitors, threat of substitutes, bargaining power of buyers and suppliers and the rivalry between existing competitors), a business can select either two of these strategies, and hence, implement it to achieve a competitive advantage within their discipline. The lower cost or differentiation advantage will allow the business to undercut competitors, and hence allows the business to survive, which is why it is needed in the change process.

Just my thoughts...

Title: Re: PSG
Post by: Elayg6 on October 10, 2017, 09:39:25 pm

Helped a lot, cheers Jigsaw!