Generic Strategic Approach Essay


Justify the generic strategic approach you have chosen. In this section do not merely repeat the advantages from the previous section. Explain why your chosen strategy is appropriate (e.g. better than others) in terms of its suitability, feasibility, and acceptability.


Strategy selection

Due to the environmental changes, organizations need to change their business strategies to adapt the change in the environment to stay competitive in the market. Strategic choice and evaluation is important for the companies to operate the business successfully in the market. This report focuses on a generic strategy which is effective for the sustainable business operations. For the discussion, one of the generic strategies, differentiation strategy is selected (Crossan, 2011).

Differentiation strategy

Differentiating goods and services are helpful in satisfying the needs of the customers by the sustainable competitive advantage. Differentiation strategy is helpful for the companies to desensitize the prices and focus on the values for the customers. The differentiation strategy requires segmenting the market based on needs of the target customers.

Differentiation strategy is focused on the development of the products and services that provides unique attributes which are valued by the customers. By the differentiation strategy, customers always seek for the different product from the competitors. Companies are trying to provide uniqueness to the customers while providing products and services to them. The differentiation strategy includes achieving competitive advantage by pinpointing the characteristics of product or service that is perceived valuable by the customers. Along with this, differentiation strategy is helpful in positioning the company to meet the demands of the customers to deal with the competition (Kaplan & Norton, 2006). Differentiation provides strength the company against competitors and competitive rivalry due to brand loyalty by the customers. Further, it increases margins which avoid low-cost position. Differentiation can also provide entry barriers for the new entrants in the market so that customer loyalty and product or services uniqueness can be enhanced. The companies have differentiated themselves to get customer loyalty for the better position in the market. The selected strategy is better than others in terms of suitability, feasibility and acceptability (Gruca & Rego, 2009).


The differentiation strategy is suitable and compatible for the business operations and the expected external environment. The differentiation strategy is perceived to be suitable within the political, social, legal and environmental aspects of the company in the market. Along with this, customers and demand in the market also play an important role in the suitability analysis of the strategy. In case of suitability of strategy, differentiation strategy is helpful for the company to identify the opportunities in the market and deal with the threats in the environment (Graham, 2008). Differentiation strategy is helpful in capitalizing the strength and core competences of the company. It is also congruent with the existing culture and alignment with broader political, environment and social context of the company. In terms of suitability factor, differentiation strategy is suitable for the company in managing external environment.


Feasibility focuses on the resources to pursue the strategic choice. Feasibility analysis includes the internal capabilities of the company. Differentiation strategies for the companies are feasible to implement in the business operations. In the market, differentiation strategies are helpful to focus the customers, and material focus on the suppliers. This enhances the relationship with the suppliers and customers by identifying their needs and requirements. Evaluating strategic options in terms of feasibility means to verify the capability of the company to deliver the strategy (Payne & Holt, 2008). This ability can be assessed based on the core competencies and resources of the company. For instance, Samsung has invested huge amount of money and resources to build the image, innovative technology, and brand value and competition position in all over the world. Differentiation strategy is feasible for the company as the company is able to improve its abilities of reducing manufacturing costs and providing cheaper products with the desired quality (Braun & Latham, 2014).


Acceptability mainly focuses on the performance results of the selected strategy in the business. Acceptability of differentiation strategy can be analyzed based on the risk and return of the company. Risks are evident of the business. No business can be operated without the element of risk. So, it is very important to take into account of risk factors while planning and implementing the differentiation strategy in the business. While focusing on the product development and market development options, various internal and external risk factors should be taken into account. For instance, in the company Apple, differentiation is one of the best strategies to be implemented. Based on the situational analyses it is observed that this strategy is the finest strategy for Apple to expand the business internationally (Ferrell & Hartline, 2008). Apple can adopt market development strategy by focusing on the strategic alliances to move forward in the market. The method of strategic alliances but the method includes risks for the company in terms of financial loss. So, by differentiation strategy, company can enter in the unexplored market without fear of huge loss. On the other hand, company needs to be careful in the differentiation strategy. There is no doubt that Apple is fully capable in providing differentiated and unique product due to R&D capabilities and technological advancements but reducing the cost of operations and selecting new vendors for some products can be challenging. These may need extensive research and lots of time in order to make the products unique in the market (Biggadike, E2010).

Based on the above analysis, it is observed that the selection if the strategic choice is not easy for the companies. In order to select right strategy for the business, companies need to analyze external and internal environments of the market to get knowledge about the needs and requirements of the customers. The factors suitability, feasibility and acceptability provide logical and comprehensive approach for the selected strategy. Differentiation strategy is helpful for the company for continuous involvement in the market for the growth and development. It can be said that differentiation strategy can generate effective results in terms of increasing market share, competitive advantage, increasing customer base and higher projects in the market.


Biggadike, E. R. (2010). The contributions of marketing to strategic management: Academy of Management Review. 6. 621-632

Braun, M. & Latham, S. (2014). Mastering Strategy. Santa Barbara: ABC-CLIO.

Crossan, M. M., (2011). Strategic Analysis and Action. (8th). Pearson Education Canada.

Ferrell, O. C., & Hartline, M. D. (2008). Marketing Strategy. (4th). Mason: Thomson Corporation. 117

Graham, H., (2008). Marketing Strategy and Competitive Positioning. (4th). Pearson Education India

Gruca, T. S. & Rego, L. L. (2009). Customer Satisfaction, Cash Flow and Shareholder Value: Journal of Marketing. 69. 115–30

Kaplan, R., & Norton, D. (2006). How to implement a new strategy without disrupting your organization: Harvard Business Review. 100-109

Payne, A., & Holt, S., (2008). Diagnosing Customer Value: Integrating the Value Process and Relationship Marketing: British Journal of Management. 12 (2). pp 159 - 182.

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