Impact of Porter’s Generic Strategy on Firm Performance with reference to Nepalese Retail Banking Sector

Porter’s generic strategies are the proven and pervasive strategic options in achieving competitiveness and better firm performance. This paper aims in examining the effect of Porter’s generic strategies (low-cost, differentiation, and focus) on firm performance in the context of Nepalese retail banks, a more competitive service industry. This study applies casual comparative research design and the data have been collected through administering questionnaire survey from 75 senior bank managers of 18 Nepalese commercial banks who being engaged in strategic affairs. The econometric model has been constructed to measure the expected effect of the strategies on firm performance. The descriptive analysis, Pearson’s correlation analysis, and multivariate regression analysis were conducted. The empirical results of correlation analysis and multiple regression analysis produced consistent results indicating positive associations between generic strategies and firm performance. The empirical results from regression analysis declared higher positive and significant impact of low-cost on firm performance. Similarly, positive effect of differentiation strategy and focus strategy on firm performance was reported. The findings suggested that pursuing low cost strategy provides more financial returns with comparison to differentiation and focus strategies. The finding also suggested for combination of low-cost and differentiation (and focus) strategies could provide better competitiveness and firm performance. Keywords: Generic Strategy, Low-cost strategy, Differentiation strategy, Focus strategy, Firm performance

Porter’s Generic Strategies and Market Share Growth of Skol Brewery Ltd in Rwanda

The purpose of this study was to examine porter’s generic strategies and market share growth of Skol Brewery in Rwanda. The specific objectives were to: determine effect of cost leadership, differentiation, and market focus on market share growth of Skol Brewery in Rwanda. The target population consists of 287 staff members of Skol Brewery Ltd. The study used simple random and purposive sampling techniques to select a sample of 167 employees. Quantitative data was obtained using questionnaire while a documentary checklist was used to obtain secondary data. Descriptive and inferential statistics were used for quantitative data analysis while content analysis was used for qualitative analysis. Results on cost leadership show a tight cost in all business activities (mean of 4.333), economies of scale (mean of 3.666), and efficient cost saving for designs (means of 4.000) and effective operational cost reduction (mean of 3.666) were used as a cost leadership component. A positive correlation was found between cost leadership and sales (r=231**, p=0.006), investment rise (r=.159**, p=0.043) and profit margin (r=.174**=0.014).Results on differentiation felt that cost allocated to the control of quality of goods and services (mean of 4.333), effort in reputation management (mean of 4.000), names (mean of 4.833). A positive correlation was between differentiation and sales (r=.274**, p=0.039), investment rise (r=.187, p=0.035) and profit margin (r=.324, p=0.032).Results on market focus found that marketing specification for products (mean of 3.833) is the measurement that has the highest level of application. A positive correlation was between market focus strategy and sales (r=.854**, p=0.018), investment (r=.873**, p=0.035) and profit margin (r=.750**, p=.0.036). The study concludes that there is no significant relationship between porter strategies and market share growth. The study recommends that management of the brewery company should evaluate implementation of cost leadership, conduct a study on market focus to respond to market niches as any gap in customer centric products would yield customer non responsiveness, benchmark differentiation, and hire competent staff to achieve its success. Keywords: Porter’s Generic Strategies, Cost Leadership Strategy, Differentiation Strategy, Market Focus Strategy, Market Share Growth

Porter’s generic strategies for competitive advantage: how they work in selected asian economies

Porter’s generic strategies are important for organizations to gain a competitive edge in their respective market. This is especially true for companies in Asia, the world’s largest continental economy in terms of gross domestic product (GDP) which is also characterized by foreign exchange restrictions, anti-trust laws, and price wars. This paper focuses on the literature on Porter’s generic strategies within the contexts of the three biggest Asian countries (China, Japan, and India). Our review highlights the generic strategies pursued by multinationals in Asia and factors to consider when executing strategic plans in business expansion to the region.

Antecedents of University Performance: Does Strategy Matter?

In a bid to contribute to the increasing body of extant interdisciplinary research within the antecedents of university performance and strategic management domains, this study investigates the role of generic strategies in the perceived performance of universities. Using a case study of eight Nigerian universities and survey responses from 380 academics and administrative staff from these universities, the study tested four succinct hypotheses using the covariance structural equation modeling (CB-SEM) technique. Findings revealed that while there was a limited link between differentiation strategy and performance, there was a substantially strong link between focus strategy and performance according to the findings. Similarly, findings revealed that respondents from public-private universities perceived their institutions as having the strongest generic strategy-performance connection, followed by respondents from the public sector. The cost leadership-performance path demonstrated no significant effect.

Streaming success: positioning Roku’s future in a hypercompetitive industry

Theoretical basis The theoretical basis for this case is a focus on strategic positioning as related to Porter’s Generic Strategies. The case accounts Roku’s journey in facing additional competition, highlighting the competitive dynamics at play. The case requires students to consider how Roku might revise its generic strategy based on the new competitive landscape in which it operates. Research methodology In writing this case, the research team used secondary research that was informed by interviews with Roku users. Resources such as IBIS World, MergentOnline, academic journals, trade magazines and websites were used to inform and verify information. Case overview/synopsis As the market disruptor of how media was consumed, Roku had been connecting customers, publishes and advertisers with its unique capabilities for over 10 years. With the belief that all TV content should be available through streaming, Roku had forever changed the traditional model of how media was distributed and consumed. By capitalizing on the previously untapped economic opportunity of TV streaming platforms, Roku had made itself the premier streaming broadcast service for users, content publishers and advertisers. The company was now faced with the difficult task of finding the best ways to keep innovation high and continue to grow. Complexity academic level This case could be taught at either the graduate or undergraduate level strategy course. At the undergraduate level, it would be best taught in a strategy course, when discussing industry life cycle or vertical integration. At the graduate level, MBAs could discuss the competitive dynamics and hypercompetition within the industry.

Pengaruh Hukum terhadap Lima Kekuatan Persaingan Terkait dengan Perumusan Strategi Bersaing Menurut Michael E. Porter

There are five competitive forces that influence the Industry. Industry competition affects business performance, so companies must adapt to changing environments to maintain a competitive position. One of the ways to win the competition is to use a strategy. Strategy allows organizations to gain a competitive advantage from three different foundations namely: cost leadership, differentiation and focus. Strategic planning can help to develop an early warning system to avoid threats or develop strategies that can turn threats into profits for the company. Thus the strategy can maximize competitive advantage on the one hand, and can minimize the limitations of competing. The question is; How do laws and regulations affect Porter's five competitive forces and the three generic strategies? This research is a qualitative analytical descriptive study using secondary data, and the unit of analysis is the prevailing laws and regulations in Indonesia. The results of this study; consistently statutory regulations (laws) influence the five competitive forces and three generic strategies put forward by Porter.

Rigidifying a de novo enzyme increases activity and induces a negative activation heat capacity

Conformational sampling profoundly impacts the overall activity and temperature dependence of enzymes. Peroxidases have emerged as versatile platforms for high value biocatalysis owing to their broad palette of potential biotransformations. Here, we explore the role of conformational sampling in mediating the activity of a de novo peroxidase. We demonstrate that 2,2,2-triflouoroethanol (TFE) affects the equilibrium of enzyme conformational states, tending towards a more globally rigid structure. This is correlated with increases both stability and activity. Notably, these effects are concomitant with the emergence of curvature in the temperature-activity profile, trading off activity gains at ambient temperature with losses at high temperatures. We apply macromolecular rate theory (MMRT) to understand enzyme temperature dependence data. These data point to an increase in protein rigidity associated with a difference in the distribution of protein dynamics between the ground and transition state. We compare the thermodynamics of the de novo enzyme activity to those of a natural peroxidase, horserad-ish peroxidase. We find that the native enzyme resembles the rigidified de novo enzyme in terms of the thermodynamics of enzyme catalysis and the putative distribution of protein dynamics between the ground and transitions state. The addition of TFE apparently causes C45 to behave more like the natural enzyme. Our data suggest robust, generic strategies for improving biocatalytic activity by manipulating protein rigidity; for functional de novo protein catalysts in particular, this can provide more enzyme-like catalysts without further rational engineering, computational redesign or directed evolution.

Generic Strategies and Performance of Pharmaceutical Manufacturing Companies in Nairobi County, Kenya

Pharmaceutical industry has been facing a lot of competition both from the inside and outside the country (importers of raw materials who also manufacture finished product). A report by the Kenya Pharmaceutical Sector Profile in 2018 indicated that imports have been rising sharply and grew by more than 30% between 2017 and 2018 in other sectors but a decline from the pharmaceutical manufacturing sector which could be attributed to the low-quality pharmaceutical products. The aim of this study was to analyze the generic strategies and performance of pharmaceutical manufacturing companies in Nairobi County, Kenya. The specific objectives were to: assess the effect of cost leadership strategy, differentiation strategy and focus strategy on performance of pharmaceutical companies in Nairobi County, Kenya. The study was informed by Porter’s Five Forces Model and Resource Based View theory. The study used descriptive research design. The population of this study was all the 22 pharmaceutical manufacturing companies in Nairobi County. The target population was the managers in the pharmaceutical manufacturing companies. The study was a census of all pharmaceutical manufacturing companies in Nairobi. A structured questionnaire was used for data collection. The questionnaire was pilot tested to determine its validity and reliability. The study used primary data which was gathered from the managers. Data collected was organized in spreadsheets for the purpose of analysis. It was coded and entered in Statistical Package for Social Sciences (SPSS, Version 22.0) for analysis. Correlation and regression analysis were conducted to find the relationship between the independent and dependent variables. The study found that cost leadership strategy, product differentiation strategy and focus strategy positively and significantly influenced performance of pharmaceutical companies in Nairobi County, Kenya. The study concluded that managing the production expenses enhances business performance because of increased profit value. Also, the study concluded that using technology to automate business operations lowers the cost thus increasing profitability. In addition to that, the study concluded that providing high quality products to customers builds customer loyalty which translates to improved performance. Similarly, the research concluded that lowering prices relative to that of competitors attracts more customers leading to increased sales volume. It was recommended that pharmaceutical firms should always aim at lowering the cost of production to reap optimal profits. However, these products should meet the quality demands in the market. It was also recommended that businesses should conduct customer satisfaction surveys to bridge the niche that may be identified. This way, businesses will be able to offer the relevant products and services and gain customer loyalty which eventually leads to increased profitability. In addition, it was recommended that non price competition strategies such as product packaging should be adopted by pharmaceutical firms to increase profitability. Customers would prefer to buy uniquely packaged products as they appear appealing. Future areas of study should focus on other competitive strategies since the three generic strategies that were identified did not account for 100% of the variation in performance of pharmaceutical firms.

PORTER'S GENERIC STRATEGIES AND FIRM PERFORMANCE IN PETROLEUM MARKETING COMPANIES: A CASE STUDY OF VIVO ENERGY, NAIROBI, KENYA

ABSTRACT The main objective of the study was to establish the influence of Porter's generic strategies and firm performance in petroleum marketing companies using Vivo Energy Limited as a case study. The business environment in emerging economies has witnessed intense competition among firms. Petroleum marketing companies in Kenya have had to face such conditions in a competitive environment prompting the firms to develop strategies that match their capabilities to market demands. The specific objectives of the study were: to examine how leadership cost strategy and; focus strategy affect the firm performance of Vivo Energy Limited. The study was premised on the; resource-based view, competitive advantage and contingency theories. This study adopted a descriptive research design. The target population was 237 employees at Vivo Energy Limited. Stratified proportion sampling was used to obtain a sample of 108 respondents. Questionnaires were used for data collection. Data was analyzed using descriptive and inferential statistics to determine the relationship between the study variables. Pearson correlation analysis was carried out to establish the relationship between dependent and independent variables. The analysis of variance (ANOVA) was checked to reveal the overall model significance. The study established that there was a positive relationship between the cost leadership strategy and firm performance. Analysis also revealed that focus strategy had a substantial positive correlation, establishing that focus strategy and firm performance are fundamentally related, and that the variation in firm performance can be explained by a unit change in focus strategy. The study recommended that the management of Vivo Energy Limited should adopt cost leadership strategy that is focused on gaining competitive advantage byselling their products at average prices to earn higher profits than competitors in the sector or below the average industry prices to gain market share. It also recommends that Vivo Energy should consider employing focus strategies that are concentrated on narrow segment aimed at achieving cost advantage or differentiation. Keyword: Cost leadership, Firm Performance, Focus strategy, Generic Strategies