Dynamics of Strategy Harvard Case Solution & Analysis

Question 1

There are three different types of generic strategies that have been developed by Michael Porter. Opening a new company is an easy task, however, operating that company successfully is the key task and this depends solely on the right choice of corporate and business level strategies of the company(Mindtools, 2018). According to Michael Porter, the strategic advantages of the different generic strategies would help the firms to develop and sustain the competitive advantages in front of their rivals and fight with them in the long run. There are three different generic strategies that have been developed by Michael Porter and these are listed below(Kiechel, 2010):

  • Cost Leadership.

If we analyze the Frederick Cooper Lamp, then we get the evidence for all of the above three generic strategies and which of these three have been applied by the owner of the company to sell their lamps in the market. We have discussed all of these with evidence from the case as follows:

Cost Leadership Strategy

Any company that applies the cost leadership strategy focuses on producing standard products for its customers and then sells those products to the customers at the lowest price per unit possible. This means all those customers that are highly sensitive to the prices of those products would be attracted by the company to buy the products of the company at those lower prices.

Dynamics of Strategy Harvard Case Solution & Analysis

This low cost strategy could be used to target the mass markets or the larger markets. For this strategy, the prices of the products and the services of the company are the lowest as compared to the prices of the rivals in the market(Kiechel, 2010). When the firm has a low cost position within the market, then it is able to generate higher returns within the market. In order to make this strategy successful, the firms are required to sell their products in larger volumes and they should manufacture an easier product relative to other products in the market(Porter, 1985).

If we look at the case study, then we don’t find any evidence regarding the use of the cost leadership strategy as the Cooper Lamp company was making the most expensive products in the market. Therefore, the case provides us with evidence that this strategy had not been applied by the management of the company. We now discuss the differentiation strategy.

Differentiation Strategy

The case study states that Cooper Lamp company has been making use of the focused differentiation strategy. Focus strategy is the third strategy so we would be discussing it in the next section. Here we discuss only the differentiation strategy. All the companies that make use of the differentiation strategy tend to produce services and products that are highly differentiated as compared to the services and products of their rivals(Kiechel, 2010).

There can be different degrees of differentiation and this can depend upon the size, customer service, features, technology, brand image,etc. of the firms. All the companies are required to perform a detailed feasibility analysis of the needs of the customers before implementing the differentiation strategy(Gamble, 2010).............

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