Organizational Requirements For Generic Strategies

To be successful, according to Porter, companies need to select and focus on one of the three proceeding courses of action and the rigorously pursue its application.

"Successfully executing each generic strategy involves resources, strengths, organizational arrangement, and managerial style... Rarely as a firm suited for all three" (Michael E. Porter ).

The implementation of any of the generic strategies entails different skills, resources, and organizational requirements. Some implications for organizations using one of these strategies are summarized in Figure 9-3.

Risks Of The Generic Strategies

Fundamentally, the risks is pursuing the generic strategies are two:

  • first, failing to attain or sustain the strategy;
  • second, for the value of the strategic advantage provided by the strategy to erode with industry evolution.

However, the three strategies are predicted on erecting differing kinds of defense against the competitive forces. Therefore, each generic strategy involves different risks which are shown in Table C.


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Generic Business Unit Strategies
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