One of the general frameworks, the generic competitive strategies, linked to the topic of competitive strategies, was developed by Michael E. Porter. This framework is related to the hypothesis that only generic strategies in their pure form would lead to above average performance in competition. Besides that, other authors described strategy models consisting of combinations of the generic strategies called combination or hybrid strategies although these theories contradict the hypothesis of porter.
The purpose of this work is to find evidence for the existence and the performance of hybrid strategies in comparison to generic ones.
Therefore the first step is an explanation of competitive advantages. Then the coherence of return on investment and market share is explained. Further competitive advantages are derived from that relationship. After that the generic competitive strategies are annotated as a way to achieve competitive advantages. Besides that the hypothesis of inconsistency concerning hybrid strategies by Porter is explained. In addition the hybrid strategies are elucidated. In the last part of this work evidence for the existence and performance of these strategies shall be proven on an empirical basis by evaluating different studies from different authors.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Being successful through competitive advantages
- Competitive advantage
- The PIMS-Research study
- Generic competitive strategies
- Relevance of competitive strategies
- Being "Stuck in the middle"
- Hybrid competitive strategies
- Literature review
- Hall
- White
- Wright et al.
- Miller & Dess
- Thornhill & White
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this work is to investigate the existence and performance of hybrid competitive strategies compared to generic ones. The study explores the relationship between competitive advantage, return on investment (ROI), and market share, using the PIMS research study as a foundation. It examines Porter's framework of generic competitive strategies and the contrasting views on hybrid strategies. The analysis will draw upon various empirical studies to support the findings.
- Competitive advantage and its relationship to profitability and market share.
- Porter's generic competitive strategies and their implications.
- The debate surrounding the effectiveness of hybrid competitive strategies.
- Empirical evidence for the existence and performance of hybrid strategies.
- Analysis of different research studies on competitive strategies.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory chapter sets the stage by highlighting the increasing intensity of global competition and the growing importance of understanding competitive strategies for achieving sustained success. It introduces Michael E. Porter's framework of generic competitive strategies, positing that only these pure strategies lead to above-average performance. The chapter also acknowledges alternative models proposing combinations or hybrid strategies, which challenge Porter's hypothesis. The core objective is to investigate the existence and relative performance of these hybrid strategies.
Being successful through competitive advantages: This section delves into the concept of competitive advantage, defining it as the superior value a company offers its consumers compared to competitors. It uses sustained profitability as evidence of a competitive advantage. The chapter then explores the PIMS (Profit Impact of Market Strategy) research study and its findings demonstrating a strong correlation between market share and profitability, using ROI data from various business segments to illustrate this relationship.
Generic competitive strategies: This chapter focuses on Porter's framework of generic competitive strategies, explaining their relevance in achieving competitive advantage. It examines the potential pitfalls of being "stuck in the middle," a situation where a firm fails to clearly commit to a specific strategy and underperforms as a result. The chapter also critically analyzes Porter's stance against hybrid strategies and introduces the concept of combining different generic competitive strategies.
Literature review: This chapter reviews several key studies related to competitive strategies. The research of Hall, White, Wright et al., Miller & Dess, and Thornhill & White is examined to understand differing perspectives and contributions to the field of competitive strategy and provide a basis for empirical evidence in the main study.
Schlüsselwörter (Keywords)
Competitive advantage, generic competitive strategies, hybrid competitive strategies, Porter's framework, PIMS research, market share, return on investment (ROI), profitability, global competition, empirical studies.
Frequently Asked Questions: A Comprehensive Language Preview on Competitive Strategies
What is the main topic of this language preview?
This preview covers the topic of competitive strategies, focusing on the existence and performance of hybrid strategies compared to generic strategies as defined by Porter's framework. It examines the relationship between competitive advantage, return on investment (ROI), and market share, drawing upon the PIMS research study and various empirical studies.
What are the key themes explored in this preview?
Key themes include competitive advantage and its relationship to profitability and market share; Porter's generic competitive strategies (cost leadership, differentiation, focus); the debate surrounding the effectiveness of hybrid competitive strategies (combining elements of multiple generic strategies); empirical evidence for the existence and performance of hybrid strategies; and a review of relevant research studies on competitive strategy.
What is the objective of the work previewed here?
The objective is to investigate the existence and performance of hybrid competitive strategies in comparison to generic strategies. It aims to explore the connection between competitive advantage, ROI, and market share, using the PIMS research as a base and analyzing contrasting views on hybrid approaches.
What is the PIMS research study, and how is it relevant?
The PIMS (Profit Impact of Market Strategy) research study is a large-scale database analysis that reveals a strong correlation between market share and profitability. The preview uses this study to illustrate the relationship between market share and ROI across various business segments.
What are Porter's generic competitive strategies, and what are the potential pitfalls of not adhering to them?
Porter's framework identifies three generic competitive strategies: cost leadership, differentiation, and focus. The preview discusses the risk of being "stuck in the middle," where a firm fails to commit to a specific strategy and underperforms as a result.
What is the debate surrounding hybrid competitive strategies?
The preview explores the debate regarding the effectiveness of hybrid competitive strategies – combining elements of multiple generic strategies. While Porter's framework suggests pure strategies lead to superior performance, the preview investigates whether hybrid approaches can also be successful.
Which empirical studies are reviewed in this preview?
The preview includes a literature review examining the work of several key researchers in the field of competitive strategy, including Hall, White, Wright et al., Miller & Dess, and Thornhill & White. These studies provide differing perspectives and empirical evidence on competitive strategies.
What are the key chapters covered in this preview?
The preview provides summaries for an introduction, a chapter on achieving success through competitive advantage (including the PIMS research), a chapter on generic competitive strategies (including the "stuck in the middle" concept), a literature review, and a conclusion.
What are the keywords associated with this language preview?
Keywords include competitive advantage, generic competitive strategies, hybrid competitive strategies, Porter's framework, PIMS research, market share, return on investment (ROI), profitability, global competition, and empirical studies.
- Quote paper
- Tim Borneck (Author), 2015, Generic vs. hybrid competitive strategies, Munich, GRIN Verlag, https://www.grin.com/document/320272
