Michael Porter, an Engineer-cum-economist, came up with the generic strategies that can be applied in business. These strategies are broadly based on the market share and segmentation. As such, he came up with two market scopes; the narrow and wide market scopes. The narrow market scope is further divided into the segmentation strategy. The wider market scope is segmented into cost leadership and the differentiation strategy.
In my opinion, the Porter’s ideas were well thought and stipulated. They cane be employed in a business set-up during the initiation stages and also when dealing with the different competitors in the market. Through the understanding of market dynamics, an investor can deduce which strategies are bet to apply at a specific time so as to get an edge over the competitors and also to remain in business despite the prevailing conditions. In other words, these are strategies which can be employed in making sure that a business stays afloat amid the various challenges, including competition.
The strategies are also sound and can be applied during strategic management in business. As David (2009) observes, there are the nine matrices that are involved in strategic management. These include among others strategy formulation, building of the business vision and mission as well as the external and internal assessment. When these business aspects are mentioned, it goes without saying that the market size has to be considered. This is mainly because the main aim of every business is to win and command a given market share within the business arena. Therefore, it can be argued that Porter’s ideas are well crafted and relevant to the business field.
Reference
David, F.R. (2009). Strategic Management: Concepts (12th Ed). New York, NY: Prentice Hall.
