波特三大通用战略(Potter's three general strategies)

波特三大通用战略（Potter's three general strategies）First, Potter's three general strategies
Cost leadership in "one"
Core idea
For a long time, in the value chain of the enterprise product cost and keep the leading level in the same industry, and take a series of measures in accordance with this goal, to enable enterprises to gain more than the industry average profit.
Low cost logic
Economies of scale, high market share, high returns, renewal of equipment, addition of personnel, economies of scale
The characteristics of low cost leading strategy
1. strategic objectives: a wide range of markets
2. the basis of competitive advantage: lower than the total cost of competitors
3. product line: a good basic product with a certain amount of adjustment (acceptable quality and limited choice)
4. product focus: continue to study cost reduction methods, but can not sacrifice acceptable quality and necessary characteristics
5. marketing focus: make full use of the advantages of product characteristics, so that the cost is reduced
6. strategic Sustainability: economic price / good product; destination is the strategic component of a sustainable cost advantage - the key is to reduce the cost of the business year after year and in every field of operation
Characteristics of low cost providers
1. company culture with strong cost consciousness
2. total participation in cost control
3. continue to pursue and surpass the benchmark cost
4. careful study of budget requirements
5. develop a plan for continuous improvement of cost status
Prerequisites for implementation
1., price competition is fierce
2. products are standardized or easy to obtain from multiple suppliers
3., there are not many ways to realize differentiation
4. most customers use the product in the same way
5. customer switching costs are low
6, a large number of customers, with great bargaining power
Looking for and controlling cost drivers (Potter view)
1. scale
2. learning
3. utilization of production capacity: case: process change
4. the link between value activities in the value chain: Kanban management
5. vertical links of value chain: example: Integration
6. horizontal linkages of value chain
7. internal policy
8 timing choice
9. geographical position
10. government and other general environmental factors
Restructuring the value chain to form structural changes
Marginal profit: information system, paperless office, flat, simple planning system
Emphasizing the efficiency and skill salary system, highlighting the cost oriented human resource development
Technology input to ensure the reduction of production costs, imitation or follow-up development
Can find cheap raw materials procurement procedures, encourage the use of low-cost supply business assessment methods
Establish a system connected with suppliers
Scale production, experience curve, efficient equipment for production
Low cost distribution, low price mode of transportation
A small, well trained sales force; able to form a lot of prices
Product installation efficiency, avoid repeated maintenance
Eight. Advantages of cost leadership strategy
1. rely on price competition, bring high market share
2. low cost provides some protection in front of bargaining power with powerful customers
3. low cost, strong supplier, strong ability to withstand unstable economic factors
4. the pricing power offered by low cost can be used as a barrier to prevent potential entrants
5. low cost makes the company in a position to use low prices as a defensive alternative to offensive means
Nine. Defects of cost leadership strategy
1. large investments are required to invest in advanced equipment in order to maintain high productivity
2. low cost methods are easily imitated by rivals
3. technological advances have brought competitors into lower costs, threatening the original firm
4. pay too much attention to cost reduction and ignore it:
Quality and characteristics
Changes in customer needs and preferences;
The sensitivity of customers to price is declining;
Customer's interest in product differentiation
5. high barriers to exit, outdated equipment
Ten. The difference between optimal cost and cost leadership strategy
Aim at low cost strategy
Lower costs than other competitors within the industry
Aiming at the best cost strategy
At the same time, it costs less than other products with similar properties and attributes,
Set a higher value limit
A firm with optimal cost strategy cannot be an absolute cost leader in the industry, because the integration of additional product performance and attributes is not available to the product of a low-cost leader
Product differentiation of "two"
By virtue of technology and management, the products and services provided by enterprises have unique characteristics in the industry.
They can be shown in..:
1. products: appearance, function, quality, brand, image;
2. sales methods: direct selling, distribution, retail, sales promotion and so on;
3. service methods: supply, maintenance, value-added;
4. or their combinations.
The reduction of substitutability means the enhancement of monopoly factors.
Looking for differences in product / service value that creates value for consumers and is not easily imitated and matched by competitors at low cost
Difference and price: don't pay too much for the difference characteristic
The characteristics of differentiation strategy
1. strategic objectives: a wide range of markets
2. the basis of competitive advantage: the ability to provide customers with products that are different from their competitors
3. product line: a wide range of products, a wide range of choice, with particular emphasis on the characteristics of the difference has been selected
4. product focus: invention creates value for customers; strives for product advantage
5. marketing focus: establish the characteristics of customers willing to pay; ask for premium, recover the cost of differentiated products
6. strategic continuity: communicating differences in a credible way; emphasizing constant improvement and innovation to stand before competitors; focus on a few key differentiated features; create reputation and brand preferences
Implementation conditions
1. strong R & D capability
2., very high visibility and reputation
Top 3. marketing capabilities
4. the functional departments have good coordination
Realization way
Market segmentation takes advantage of favorable competition and advocates conceptual differentiation.
1. form unique concepts"
2. form conceptual innovation on the basis of original products
Guide the competition mode of enterprises from price competition to non price competition, and realize the difference of travel.
3. characteristic differentiation
1. packaging, pricing, trademarks, channels, promotions,
services and so on
4. quality differentiation
1. performance, design, quality and additional functions, etc.
5. technology differentiation
Strengthen product development and design capabilities, and gradually form its own brand system, the implementation of brand differentiation
Brand positioning and brand image differentiation
Cultivate brand confidence and form competitive advantage
Search for and control differentiated drivers (Potter's view)
1. internal policy and opportunity
Synergy between 2. value chains
3. links within the value chain
4. vertical connection and vertical integration degree
5., the link between operating units
6. value chain characteristics
7. political factors and position
Restructuring value chain:
Highly developed information systems to better understand customer preferences; emphasis on high quality is important.
A salary system that stimulates employee creativity and productivity; a proper increase in subjective evaluation; a high level of personnel training
Strong basic research ability and technical input for differentiation
Find high quality raw materials procurement process, high quality procurement of substitutes
Height treatment of purchased raw materials,
Continuous production of attractive products; rapid response to customer special needs
Accurate and quick response to order procedures; rapid distribution
Provide a high level of commitment to the buyer's reputation based purchase; relationships with buyers and suppliers
Customer training, spare parts inventory
Advantages
1. meet the special requirements, cultivate trust
2. forming functional barriers
3. cultivate customer loyalty
4. increase the bargaining power of suppliers and produce higher marginal revenue
5. anti substitute entry
Insufficient?
1. cost is too high
2. stronger differentiated customer switching
3. customers are always sensitive to price, making it difficult to have big sales
4. competitors launched cheap products
5., the data of living consumption are more effective
6. attention
1., there is market significance
2. have real value
3. don't educate the market
4., there are barriers to competition
Five
Mention the cultural level
6. fast occupancy
7. extending and upgrading in time
"Three" Potter's three general strategies
Focus / niche strategy
By satisfying the special needs of a particular consumer group or serving a limited regional market, the firm's competitive advantage and its market position are established.
Intensive management
Better service to customers than competitors
More suitable for small and medium-sized enterprises
Its success depends on the difference between the target market segment and the other market segments
Significant preference
Special requirements?
Unique demand
Features
1. strategic objectives: a narrow market niche where customer needs and preferences are significantly different from those of other markets
2. the basis of competitive advantage: to serve niche at lower cost or to provide niche customers with their preferences and interests
Product capabilities
3. product line: meet the professional needs of target market segments
4. product focus: adjusted niche
5. marketing focus: the unique ability of communication focus to meet the professional requirements of customers
Strategy 6.: keep continuous wholeheartedly than the other competitors to better serve niche market; enhance the vendor's image, is there are different customer requirements into market segments or other types of products to increase market demand widened
Way
1., in the service segment market, to achieve lower cost than rivals - low cost strategy
2. providing niche customers with something different from their competitors -- differentiation strategy
Implementation premise
1., the strength of enterprises is weak, not enough to pursue extensive market goals
2., niche customers or regions exist, and the market size is enough to make a profit
3. good growth potential
4. is not the key to the success of the major competitors, low intensity of competition
5., the resources of the focus can effectively serve this market segment
6., the concentration can prevent challengers from serving customers in market segments with superior capabilities
Advantages
1. target concentration, simple management, centralized resources
2. Market Research and technical expertise
3., production is highly specialized, achieving economies of scale
4., there is a larger profit space
5. high customer loyalty
6. defects
7. market changes, new technology adoption or alternatives appear, will be impacted
8. the niche market will collapse when the market grows
9. the growth and entry of competitors。