Generic Strategies Model

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Generic Strategies Model MGMT499 Unit 4 Assignment AIU Abstract A newly promoted VP was asked by the CEO to participate in the upcoming strategic planning session. The high-level type planning versus the more routine type planning will be prepared for the generic strategies model from the strategic-planning literature. This paper will identify and describe three retail firms and note the broad strategy each firm chose. It will identify specific tactics employed by the firms and if they are working. Performance Review The generic strategies, cost leadership, differentiation, and focus are applied at the business unit level. The cost leadership strategy calls for low cost producing in the industry with a level of quality. The company will sell their product at average industry prices for higher profits or below the average industry price for higher market shares. The differentiation strategy develops a product that is unique and valued by its customers and perceived as different. Its value is added by is uniqueness and allows for a premium price. The focus strategy has a narrow segment and attempts to achieve cost advantage or differentiation. Its high degree of customer loyalty is served by focusing on the needs of its customers (Porter’s, 2013). Recreational Equipment, Inc., REI, is a retailer known for sporting goods, outdoors gear, and apparel. With 127 stores in 31 states and 11,000 employees, REI was founded in 1938 (Smith, 2012). In 1938, Lloyd Anderson began the now largest consumer co-op. This company sales men, women, and children high-quality gear and apparel for outdoor recreational needs (The REI Story, 2013). REI uses the focus strategy which shows in their limited variety of items sold in the store and their commitment to selling sporting goods, gear, and apparel. According to Forbes, REI is the number one retail company to work for;

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