In the concentration corporate, level strategy the organization usually concentrates on its principal business line, and it looks for new ways of expanding it growth through expanding its core production process. In this strategy, the organization may opt to adopt the product-market exploitation strategy where it increases its sales of its main product in the existing marketplace. It may also choose to adopt the product development option where it develops a new product for selling in the currently existing market (Kazmi and Azhar). The new product may be a modified or an improved version of the original product. As well, the organization may look for a new market to sell its products.
In the vertical corporate integration strategy, the organization grows by gaining control of its outputs forward or inputs backward. In backward integration, the company gains control over its resources and become its own supplier. In the forward integration strategy, it gains control of the outputs and becomes its own distributor. Thus, by expanding its activities and operations, the organization is able to grow further.
In the diversification corporate growth strategy, the organization expands its operations by looking for a different industry and moving into it. This makes the organization a multiple business organization because it operates in different industries. In this strategy, the organization can opt to expand its operations into a different industry that is related to its primary industry. As well, the organization can decide to expand its operations into an entirely different industry from its current operations (Kazmi and Azhar).
I would prefer the concentration corporate level strategy. This is because this approach allows a company or an organization to master in one business. It allows specialization of the organization's operations and the staffs are able to gain in-depth knowledge and experience of the business operations. This helps in reducing strategic mistakes making it easier for the company to gain competitive advantage.
Posting 2
The core competence portfolio approach is an organization approach that places core strengths within an organization first to be able to gain a competitive edge in the marketplace. From this approach, the organization competitiveness comes from its own ability to be able to build and adapt to the new market conditions more steadily than its rival competitors. Thus, an organization real source of advantage comes from its management ability to be able to develop and incorporate technological and production skills competencies of its workforce that give the organization a competitive edge of being able to adapt quickly to changing complex situations. The approach can be seen in a combination of inherent, applied skills and integrated knowledge and attitudes by the organization employees (Agha, Alrubaiee, and Jamhour). This approach is quite advantageous to organizations as it provides the business with potential access to a wide variety of markets and it is very difficult for competitors to imitate.
Core competence entails a combination of pooled workforce technical capability and knowledge that allows an organization to run its operation smoothly and efficiently regardless of the obstacles faced. The approach is critical as it allows the business to be able to expand to new market segments while at the same time providing significant customer benefits. When an organization builds its core competencies, it establishes a footprint for brand recognition. This further enhances the company continued growth and survival differentiating it from its rival competitors. The concept of core competence is one of the most crucial business ideas that is currently shaping businesses today (Ljungquist). It has been considered as one of the key attributes lying behind the outsourcing wave as enterprises concentrate greater efforts in operations that they are efficient in and outsource as many ideas as they can to improve their operations.
Work citied
Agha, Sabah, Laith Alrubaiee, and Manar Jamhour. “Effect of Core Competence on Competitive Advantage and Organizational Performance.” International Journal of Business and Management 7.1 (2011): 192–204.
Kazmi, Azhar, and Azhar Kazmi. Strategic Management and Business Policy. New Delhi: Tata McGraw Hill Education, 2008. Print.
Ljungquist, Urban. “Specification of Core Competence and Associated Components: A Proposed Model and a Case Illustration.” European Business Review 20 (2008): 73–90.
