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Understanding Porter's Generic Strategies

The document discusses Porter's generic strategies and the concept of core activities, including in-house, outsourcing, and subcontracting. It outlines different market models—developing, growth, steady, and mature markets—highlighting their characteristics and implications for demand and supply. Additionally, it emphasizes the importance of understanding market needs and conditions to optimize competitiveness and profitability.

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Sadequl Shahin
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9 views10 pages

Understanding Porter's Generic Strategies

The document discusses Porter's generic strategies and the concept of core activities, including in-house, outsourcing, and subcontracting. It outlines different market models—developing, growth, steady, and mature markets—highlighting their characteristics and implications for demand and supply. Additionally, it emphasizes the importance of understanding market needs and conditions to optimize competitiveness and profitability.

Uploaded by

Sadequl Shahin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Understanding Competitiveness

Porter’s generic strategies


Can a company that is
stuck in the middle earn
interesting profits.
If yes, How??

YES!!!

- All other players are


stuck in the middle
- The industry might
be highly attractive
Understanding Competitiveness

Porter’s generic strategies


Is it possible to become
differentiated and cost
leader at the same time?
Quiz-2
21 November 2025
Understanding Competitiveness

The Concept of Core Activity


• In-house
• Outsourcing
Non- • Subcontracting
Core core
Activities Activities Difference between
Outsourcing and
subcontracting?

Near-Core
Activities
Product Life Cycle

Product Life Cycle


Models of Market and their Supply Chains

Models of Market

Market Model Demand Supply

Developing Market Low/ Uncertain Low/ Uncertain

Growth Market high Low/ uncertain

Steady Market High/ Predictable High/ Predictable

Mature Market Low/ uncertain high

Ref.- Essentials of supply chain management (Hugos, Michael H), Chapter-5


Models of Market and their Supply Chains

Models of Market
Developing Market
• Both demand and supply are low and uncertain
• New/ Emerging market for new product
• Emergence of new technology
• Change in social/ economic trends
• Need to understand the changed/ new need of the market
• Partnering with the other players of the SC
• Cost of sales is high
• Inventory is low.

Ref.- Essentials of supply chain management (Hugos, Michael H), Chapter-5


Models of Market and their Supply Chains

Models of Market
Growth Market
• Demand > Supply
• Uncertainty in supply
• Is created when a developing market is solidified.
• If the product or service is good enough, the customer will
pay premium price
• Inventory should be high
• Cost of sales should be low
• Ideal condition for increasing market share. (How?)

Ref.- Essentials of supply chain management (Hugos, Michael H), Chapter-5


Models of Market and their Supply Chains

Models of Market
Steady Market
• Both demand and supply are High and predictable
• Stable/ Established market (Ideal condition??)
• Good competitive market environment
• Cost----???
• Inventory----???

Ref.- Essentials of supply chain management (Hugos, Michael H), Chapter-5


Models of Market and their Supply Chains

Models of Market
Mature Market
• Demand < Supply
• Uncertainty in demand (Why?)
• Flexibility in product design is needed. (Why?)
• Cost of sales is higher (Why?)
• Inventory should be low. (Why?)

Ref.- Essentials of supply chain management (Hugos, Michael H), Chapter-5

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