Abstract
Today, in turbulent market environments and successive appearance of new competitors, one of the most important goals of industrial and business firms is first to keep their market share and then to increase it. They must find untapped markets or make them themselves therefore they have to know their competitive advantages. In 1980, M. Porter introduced three generic strategies. They have been concentrated to cost leadership, product differentiation and focus strategy. Nowadays many companies use Porter’s generic strategies pattern. The main challenge for companies is how to use Porter's generic strategies according to the internal and external factors of the company. This study presents a formulated framework for selection and prioritization of the best firms strategies based on Porter’s generic strategies. The purpose of this study is to present a comprehensive logical method for prioritization of the best strategies according to porter’s generic strategies then improving of SWOT analysis. This study tries to answer these questions: What is the method for improving selection and prioritization of strategies based on porter’s generic strategies? 2. How organizations can select the best strategies? How organizations can prioritize the selected strategies? How they can select and prioritize the best strategies of organization according to Porter’s generic strategies? In this study, we used SWOT analysis for selection of the strategies and prioritizing them by fuzzy PROMETHEE II method. This method uses Porter’s generic strategies as criterion. We used Shannon’s entropy to determine the importance weights of Porter’s generic strategies.
Highlights
By challenges of expansion of global trade, rapid changes in consumption patterns and demand, the revolution in information technology and an increase in the number and quality of local and international competitors in the past two decades, the concept of competitiveness has become very important
The purpose of this study is to present a comprehensive logical method for prioritization of the best strategies according to porter’s generic strategies improving of SWOT analysis
The obtained numbers of Shannon's entropy prioritize the criteria according to their importance. In this part for better understand, at first we introduce the fuzzy logic, fuzzy sets and fuzzy numbers introduce Shannon’s entropy
Summary
By challenges of expansion of global trade, rapid changes in consumption patterns and demand, the revolution in information technology and an increase in the number and quality of local and international competitors in the past two decades, the concept of competitiveness has become very important. Porter (1980) posited that firms with competitive advantages based on either cost leadership or differentiation are able to outperform others. Michael Porter has argued that the strengths of firm fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies follow: cost leadership, differentiation and focus. These strategies are applied at Corresponding Author: Shervin Zakeri, Department of Industrial Engineering, Islamic Azad University, Arak Branch, Arak, Iran
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