Types Of Generic Strategies Research Articles

The Influence of Market Penetration Strategies on Market Share in the Hospitality Industry in Arusha, Tanzania

Organizations must implement competitive product-market strategies to secure their survival and sustainability in the marketplace. They must surpass competitors that follow other generic strategy types or those who are trapped in the middle. Although several investigations have been carried out in the tourist sector, none have been conducted on the marketing methods employed by Tanzanian tour firms. The purpose of the research was to see if companies are still using Igor Ansoff's product-market strategies to grow their market share. The main purpose of this study was to determine the impact of market penetration strategies on Arusha-based travel companies’ expansion of market share A survey research design was employed in the study, targeting marketing managers from tour companies in Arusha. To determine the sample size, the researchers utilized basic random sampling. The data was gathered from a sample of 44 people. The marketing managers were handed a questionnaire with 17 questions to complete. Quantitative techniques were used to analyze the information gathered. When the data was acquired, it was cleaned, coded, categorised, and sorted. Information was then computed both by computations of deductive and expressive nature. Results indicate that market penetration strategy (β = .732, p = .000<.05) significantly influences market share at 95% confidence level. The study therefore concludes that market penetration strategy significantly influences market share among tour companies in Arusha, Tanzania. It is recommended in addition to sustaining and improving current practices under the strategy, tour companies in the country ought to continue to embrace the market penetration strategy.

GENERIC STRATEGY AND INTERNATIONALIZATION: THE ROLE OF TRANSACTION COST AND MANAGEMENT PHILOSOPHY

ABSTRACT Using transaction cost theory framework, this paper attempts to examine the influence of a domestic firm's generic strategy on its internationalization decision. It is initially proposed in this paper that a firm's vulnerability to opportunism is not uniform across all firms, but differs according to the firm's management philosophy, which is embedded in its generic strategy. Because of the philosophical differences, the threat of opportunism, a central source of transaction cost, may not be perceived as the same for firms pursuing different types of generic strategies. Furthermore, the strategic emphasis that each firms place on their various functions can moderate the above relationship. In order to show the moderating effect, an open systems perspective is adopted to derive a set of propositions regarding a firm’s international entry mode. Keywords Generic Strategy, Internationalization, Transaction Cost

Thinking strategically about thinking strategically: the computational structure and dynamics of managerial problem selection and formulation

A new model of managerial problem formulation is introduced and developed to answer the question: ‘What kinds of problems do strategic managers engage in solving and why?’ The article proposes that a key decision metric for choosing among alternative problem statements is the computational complexity of the solution algorithm of alternative statements. Managerial problem statements are grouped into two classes on the basis of their computational complexity: P-type problems (canonically easy ones) and NP-type problems (hard ones). The new model of managerial cognitive choice posits that managers prefer to engage with and solve P-type problems over solving NP-type problems. The model explains common patterns of managerial reasoning and decision making, including many documented ‘biases’ and simplifying heuristics, and points the way to new effects and novel empirical investigations of problem solving-oriented thinking in strategic management and types of generic strategies, driven by predictions about the kinds of market- and industry-level changes that managers will or will not respond to. Copyright © 2009 John Wiley & Sons, Ltd.

Thinking strategically about thinking strategically: the computational structure and dynamics of managerial problem selection and formulation

AbstractA new model of managerial problem formulation is introduced and developed to answer the question: ‘What kinds of problems do strategic managers engage in solving and why?’ The article proposes that a key decision metric for choosing among alternative problem statements is the computational complexity of the solution algorithm of alternative statements. Managerial problem statements are grouped into two classes on the basis of their computational complexity: P‐type problems (canonically easy ones) and NP‐type problems (hard ones). The new model of managerial cognitive choice posits that managers prefer to engage with and solve P‐type problems over solving NP‐type problems. The model explains common patterns of managerial reasoning and decision making, including many documented ‘biases’ and simplifying heuristics, and points the way to new effects and novel empirical investigations of problem solving‐oriented thinking in strategic management and types of generic strategies, driven by predictions about the kinds of market‐ and industry‐level changes that managers will or will not respond to. Copyright © 2009 John Wiley & Sons, Ltd.

Critical competitive methods, generic strategies, and firm performance

This paper reports research findings on the relationship between competitive methods, generic strategies, and firm performance. It was found that competitive methods in the banking industry correspond to Porter's generic strategy types and that a cost leadership strategy provides a statistically significant performance advantage over banks that are stuck‐in‐the‐middle. Alternatively, firms that used competitive methods to pursue a broad differentiation, customer service differentiation, or focus strategy were unable to realize a performance advantage over firms that are stuck‐in‐the‐middle. This study suggests that in the banking industry it may be difficult to generate superior returns using a differentiation or focus strategy.

The Benefits of a Coherent Strategy for Innovation and Corporate Change: A Study Applying Miles and Snow’s Model in the Context of Small Firms

The literature on strategy has focused a great deal of attention in the quest for a taxonomy of generic strategies (Hatten & Schendel, 1977; Herbert & Deresky, 1987; and Miller & Dess, 1993). A generic strategy can be seen as a broad categorisation of strategic choices with ample applicability across industries and organisational forms (Herbert & Deresky, 1987). On this study, the model proposed by Miles and Snow (1978) was adopted to describe small firms’ competitive strategies. Miles and Snow have produced a typology of competitive strategies. Miles and Snow proposed that firms in general develop relatively stable patterns of strategic behaviour in order to accomplish a good alignment with perceived environmental conditions. Their typology involves four strategic types: defenders, prospectors, analysers and reactors. Data were collected with a sample of 150 Brazilian small firms’ owner‐managers using a questionnaire adapted from Conant, Mokwa and Varadarajan (1990). Competitive strategies identified in this study gave additional evidence in support of Miles and Snow’s model of existence of four types of generic strategies in a competitive environment composed mainly of small firms.