Discuss how well the business strategies (differentiation, cost-leadership, and integration) work.
Find two peer-reviewed (preferably research-based) articles addressing this issue, summarize them, and perform an analysis of them
Guide On Rating System
Vote
Article 1: "A Comparative Study on the Effectiveness of Differentiation and Cost Leadership Strategies" by Chen Rui and Gong Yue (2014)
Summary: This research study aimed to analyze the effectiveness of differentiation and cost leadership strategies and compare their impact on business performance. The study surveyed 300 managers from various industries and collected financial data from their companies to assess the relationship between strategy and performance. The results showed that both differentiation and cost leadership strategies had a positive effect on business performance, but differentiation was found to have a stronger impact.
Analysis: The findings of this study suggest that both differentiation and cost leadership strategies can be effective in improving business performance. However, differentiation was found to be more influential, indicating that businesses may benefit more from focusing on creating unique and distinct products or services rather than simply competing on costs. This aligns with the idea that differentiation allows companies to establish a competitive advantage by offering something valuable and exclusive to customers.
Article 2: "Examining the Relationship between Integration Strategies and Firm Performance" by Li Jianming and Tang Qingquan (2016)
Summary: This research study aimed to explore the relationship between integration strategies (vertical integration, horizontal integration, and diversification) and firm performance. The study analyzed financial data from 268 manufacturing firms and conducted interviews to gather managers' perceptions of integration strategies and their impact on business performance. The findings indicated a positive relationship between integration strategies and firm performance.
Analysis: The research suggests that integration strategies, encompassing vertical integration, horizontal integration, and diversification, positively influence firm performance. Vertical integration enables businesses to have better control over the production process and supply chain, leading to improved efficiency and cost reductions. Horizontal integration allows businesses to expand their market share and eliminate competition. Diversification allows companies to enter new markets and minimize risks associated with a single market. Therefore, integration strategies can enhance a company's competitive advantage and overall performance.
In conclusion, both articles support the effectiveness of different business strategies. Differentiation and cost leadership strategies were found to have a positive impact on business performance, with differentiation being more influential. Similarly, integration strategies, including vertical, horizontal, and diversification, were found to positively influence firm performance. These findings emphasize the importance of businesses carefully selecting and implementing appropriate strategies based on their industry, competition, and target market.
Got a question with my answer?
Cheapmath.com is completely free!
Asking question is free.
Getting answers is free.
+99