...Michael Porter (Harvard Business School) originally discussed the problem of “stuck in the middle.” He said that the profitability of firms depends on the firm’s position and competitive advantage in that industry. He argued that competitive advantage derives from one of two strategies: cost leadership or differentiation of products or services. The problem, Porter said, was in trying to do both and thus doing neither very well. He seemed to be saying, “find what you are good at and stick to it.” Some examples: Industry | Differentiators | Stuck in the middle | Cost Leaders | Cellphones | Apple, Google | Nokia | Commodity Manufacturers | Retailing | Nordstrom, Banana Republic | K-Mart, JC Penny | Walmart, Target | Airlines | Cathay, Emirates | American Airlines | Jet Blue, Spirit Airlines | I think that being stuck in the middle could be seen as: 1. “Oh no, we are heading in the wrong direction because we have no direction of what do we do, who is our customer and what is our vision”. In this case, you need to decide: a. What your business is and isn’t. b. Who your business will sell to and who it won’t. c. What your business will sell and what it won’t. If you don’t do anything, prepare to have your business suffer and possibly face extinction. OR 2. We are in the middle to discover possible new segments of demand. After all, demand can be defined on numerous dimensions, well beyond cost and difference, such as convenience, style, and...
Words: 318 - Pages: 2
...Michael Porter’s “Generic Strategies” • Porter’s five-forces model describes strategy as taking actions that create defendable positions in an industry. • In general, the strategy can be offensive or defensive with respect to competitive forces. • Defensive strategies take the structure of the industry as given, and position the company to match its strengths and weaknesses to it. • In contrast, offensive strategies are designed to do more than simply cope with each of the competitive forces; they are meant to alter the underlying cause of such forces, thereby altering the competitive environment itself. There are, of course, many specific strategies of each type (offensive or defensive), and identifying which is best depends on the circumstances. But Porter suggests 3 broad or generic strategies for creating a defendable position in the long-run and outperforming competitors. 1) Cost Leadership • Cost leadership means having the lowest per-unit (i.e., average) cost in the industry – that is, lowest cost relative to your rivals. • This could mean having the lowest per-unit cost among rivals in highly competitive industries, in which case returns or profits will be low but nonetheless higher than competitors • Or, this could mean having lowest cost among a few rivals where each firm enjoys pricing power and high profits. • Notice that cost leadership is defined independently of market structure. Cost leadership is a defendable strategy because: I. It defends...
Words: 966 - Pages: 4
...Dear Stuck in the Middle, First off don’t beat yourself up about the problems in your relationship, we all go through them and I am sure it will get better. That being said, I do agree with you on this matter. The Never Ending Story was an amazing show. The actors in GPAC were pretty great. Moving away from my opinion now, I can give some details on what they play was really about and the meanings of each scene and characters. The plot pretty easy to follow and was actually very clever. This story used two levels of reality. This means that there were two different things going on at once, there was the boy reading the book and then there was the actually tale that was being told. Maybe that’s why your girlfriend had a hard time believing this was a good show, she maybe didn’t understand why there was just a random boy (who was played by an obvious girl) on the side of the stage. It seemed to be this modern fairy tale that seemed to somehow mash well with the reality today. This show spoke to the little scared child that is in all of us, it gave us hope and made us feel like the hero. The acting quality in GPAC could have been more professional, but it was a student production, so for what it was I feel it was pretty descent. We all make mistakes every now and then, it’s only natural. The costumes and the scenery were basic, but it was still somehow enchanting. The dresses and the costumes for the different characters were pretty nice to look at, the horse could...
Words: 320 - Pages: 2
...South Africa: Stuck in the Middle? | 2014 | 1. Why is South Africa stuck in the middle? 2. Please find at least three problems to answer the first question. 3. Give your opinion for solving each of the problems mentioned in second answer. | | Contents Africa is experiencing extraordinary growth 2 Challenges 2 Challenge #1 Education 2 Challenge #2 Unemployment 3 Challenge #3 South Africa's growth path is highly resource intensive and hence unsustainable 4 Solutions 4 Solution # 1 - Improve education form the bottom up 4 Solution # 2 – Address unemployment from a new angle and become More attractive to Global business and entrepreneurship 6 Solution # 3 - Reduce the need for commodities and Invest in technology and entrepreneurship 8 Conclusion 8 Africa is experiencing extraordinary growth, In fact this decade has seen more growth for Africa than any other time in history making it six in the world’s 10 rising economy’s. Life expectancy is improving and HIV rates are down almost 30%. Malaria is also down and despite SA having the highest concentration of HIV in the world, African children born today are increasing their life expectancy one year for every three years over the last a decade. Education rates are increasing 25%, and more young educated man are entering the South African workforce. Yet despite these growth factors South Africa, and the continent of Africa as a whole...
Words: 3939 - Pages: 16
...JetBlue: Stuck in the Middle? Let me start by acknowledging that, as a customer, I love JetBlue. Their service stands out in an industry known for, quite frankly, a pretty awful customer experience. Having said that, I've always worried that they run the risk of being "stuck in the middle" in terms of their strategic position. They are not a low cost player in the industry, but on the other hand, they cannot command a premium price either as a truly differentiated player. Now the Wall Street Journal reports that CEO Dave Barger is under fire, as financial performance has been subpar. The paper notes, "Meanwhile, excluding fuel and profit-sharing, unit cost—the cost to fly a seat a mile—rose by 6.3%, and labor expenses were up about 15% on a unit-cost basis, the biggest jump ever year over year." What's the diagnosis in this article? Wall Street Journal writer Susan Carey explains, "But many analysts and investors believe that JetBlue is marooned in an industry middle ground, between much larger, full-service carriers like Delta Air Lines Inc. that are improving their service and profitability, and successful ultra-discounters like Spirit Airlines Inc. that go after passengers who don't want perks—just rock-bottom fares. JetBlue has been profitable since 2009, but only marginally so and it often disappoints on quarterly profits." That sure sounds like a company stuck in the middle, doesn't it? Is JetBlue stuck in the middle? In other words, are they stuck in a...
Words: 773 - Pages: 4
...Competitive Advantage: Question 1/2: A competitive advantage is a position that a firm occupies in its competitive landscape. Cost advantage Cost advantage A firm possesses a sustainable competitive advantage when it has value-creating processes and positions that cannot be duplicated or imitated by others, that lead to the production of above normal rents, in that it provides a long-term advantage that is not easily replicated. Sources of competitive advantage: Competitive advantage Competitive advantage Similar products at lower price Differentiation advantage Differentiation advantage Price premium from unique products Competitors’ gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantage. The strategies relate to the extent to which the scope of a business' activities are narrow versus broad and the extent to which a business seeks to differentiate its products. Question 3: The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. By contrast, the differentiation focus and cost focus strategies are adopted in a narrow market or industry. Cost leadership With this strategy, the objective is to become the lowest-cost producer in the industry. The traditional method to...
Words: 1626 - Pages: 7
...IKEA: Making a success of being “Stuck in the middle”? Each organization in the world follows some strategies to carry out its business activities in an appropriate manner. Strategies are the game plans stating that how to achieve an organization’s goals. Strategies, if outlined in an optimal manner can take full advantage of a company’s competitive advantage, where competitive advantage refers to a company’s ability to stand out from its competitors in the business, i.e. a business’ distinctive point, which is not easily imitate able by the firms in competition. Competitive advantage of a firm can come from its core competencies, a business’ capability to do a thing in a different manner from others, organizational resources, firm’s plus points like an organization holds something very unique which others in that industry don’t have. It’s not a real issue that a company is having competitive advantage over the other firms, but the main thing is to ‘ sustain’ that competitive edge over a long period of time. Because all business firms have resources, capabilities and core competencies, if these are utilized effectively, competitive advantage is gained but the crucial fact is the sustainability of that edge over a long time. For that purpose a business has to adopt such a business strategy which will lead to a sustainable competitive advantage, because a business strategy directs a business in dealing with its competition within the business or industry, in which it serves, i...
Words: 1129 - Pages: 5
...A four year college isńt necessary because most jobs today don´t require a college degree. People don’t need a college degree to pass in life. “it's time to give up the idea that every young person has to go to college and start offering high school seniors an alternative route into the middle class”. “46 percent of recent college graduates were in jobs that don't even required a college degree”. This means that even though people went to college and got their degree they still work at jobs that don't require a degree. Also “Even if they get the degree, thyŕe stuck with a huge bill-and may be paying down their student debt for years”. when students finish college their stuck with a bill that they might be paying for years. So is it really...
Words: 297 - Pages: 2
...Odysseus has the traits of a Homeric leader as he is strong, courageous, noble, confident in his authority, and has a thirst for glory and fame. His view on Life of Pi by Pi’s situation with being stuck in the middle of the Ocean was fair as Pi had the guts to adventure around the ship during a dangerous storm and in return got into difficulty when the ship had sunk leading him to be stuck on a lifeboat with wild animals, like a tiger, for a long time. Pi’s wrong intentions of adventuring during a storm led him to a dangerous situation. Just like when Odysseus had ventured into the Cyclops cave to steal some of his food; he and his crew were faced with the trouble of getting crushed to death by a Cyclops in which Odysseus had to deal with due...
Words: 303 - Pages: 2
...Russian Roulette lyrics Songwriters: Fenty, Robyn Rihanna; Harmon, C; Smith, Shaffer; Take a breath, take it deep "Calm yourself," he says to me If you play, you play for keeps Take the gun, and count to three I'm sweating now, moving slow No time to think, my turn to go And you can see my heart beating You can see it through my chest Said I'm terrified, but I'm not leaving I know that I must pass this test So just pull the trigger Say a prayer to yourself He says, "Close your eyes, sometimes it helps" And then I get a scary thought That he's here means he's never lost And you can see my heart beating Oh, you can see it through my chest [ From: http://www.elyrics.net/read/r/rihanna-lyrics/russian-roulette-lyrics.html ] Said I'm terrified, but I'm not leaving Know that I must pass this test So just pull the trigger As my life flashes before my eyes I'm wondering will I ever see another sunrise? So many won't get the chance to say goodbye But it's too late to think of the value of my life And you can see my heart beating Oh, you can see it through my chest Said I'm terrified, but I'm not leaving, no Know that I must pass this test You can see my heart beating Oh, you can see it through my chest I'm terrified, but I'm not leaving, no Know that I must pass this test So just pull the trigger California King lyrics Chest to chest Nose to nose Palm to palm We were always just that close Wrist to wrist Toe to toe Lips that felt...
Words: 1409 - Pages: 6
...words, you ended up being stuck in your current position. The second critical message is the acknowledgement of being stuck, that being stuck is mostly your responsibility and to get out of the stuck is also your responsibility. Also the author explained that we need to find the “why” we got stuck, develop a strategy based on the answers to your “why” questions, implement that strategy, and assess it and readjust. The third critical message was to recognize the reality that you were hired because of your technical skills, but promotion to middle to upper management is mostly related on how good are your people skills. People skills are very necessary to career...
Words: 457 - Pages: 2
...Muslim women all over the world, women in the United States, women in the Middle East, in countries such as Saudi Arabia, Pakistan, all go through extreme hardships and abuse. This problem is much greater than reported, and it is a problem that needs to be surfaced. Right here in America, Muslim women are stuck in abusive relationships and cannot do anything about it. These women cannot act out against their Muslim extremist spouses who believe it is simply ok to mistreat and beat their spouses. These Muslim women can't act out or they face the threat of death and horrible abuse. Muslim women is Middle a Eastern countries are given very little rights and also face the same kind of abuse from Muslim extremist controlled governments. People don't...
Words: 1823 - Pages: 8
...Immigration “No one leaves home unless it’s the mouth of the shark,” - (Unknown). Immigration is the action of coming to live permanently in a foreign country.the action of coming to live permanently in a foreign country. Immigration has been a huge problem due to the harsh conditions that some of these people have to go through. The countries with the largest amount of immigration are countries from the middle east like United Arab States, Qatar and Kuwait is Syria, Afghanistan, and South Sudan. The largest problems about immigration is child separation, closed borders and refugee camps that immigrants get stuck in. Child separation has been a huge problem since President Trump has passed a policy that separates families after they cross the border. According to various sources, the law was passed in 1997 and has separated over two thousand children from their families over the years. This is show in NPR news, and a website called Snopes one article says, “THE LAW TO SEPARATE PARENTS FROM THEIR CHILDREN WHEN THEY CROSS THE BORDER ILLEGALLY WAS PASSED IN 1997. NOW IT’S A PROBLEM?” - (Snopes). This supports my claim because it’s one of the most cruel things that you can do to a child for a...
Words: 630 - Pages: 3
...Lord, I give You my heart This is my desire to honor You Lord, with all my heart, I worship You All I have within me, I give You praise All that I adore is in You Lord, I give You my heart I give You my soul, I live for You alone Every breath that I take, every moment Im awake Lord, have Your way in me This is my desire to honor You Lord, with all my heart, I worship You All I have within me, I give You praise All that I adore is in You Lord, I give You my heart I give You my soul, I live for You alone Every breath that I take, every moment I'm awake Lord, have Your way in me And I will live And I will live for You And I will live And I will live for You Oh and I will live And I will live And I will live for You Lord, I give You my heart I give You my soul, I live for You alone Every breath that I take, every moment I'm awake Lord, have Your way in me Have Your way in me Lead me to the cross Savior I come, quiet my soul Remember, redemption's hill Where Your blood was spilled For my ransom Everything I once held dear I count it all as lost Lead me to the cross where Your love poured out Bring me to my knees, Lord, I lay me down Rid me of myself, I belong to You Oh, lead me, lead me to the cross You were as I, tempted and trialed You are, the word became flesh Bore my sin and death Now You're risen Everything I once held dear I count it all as lost Lead me to the cross where Your love poured out Bring me to my knees, Lord, I lay...
Words: 1286 - Pages: 6
...Stefani Arcadi C. Centorame ENG 2D March 24, 2015 The Catcher in the Rye The transition from childhood to adulthood is a huge journey. In the novel the Catcher in the Rye by J.D. Salinger, Holden Caulfield is on his own journey and cannot accept the fact that his childhood is slipping away and that he has to grow up and face reality. Holden is having a difficult time doing so because he is afraid that if he grows up he will become a phony and will not be himself. Holden is poised between two worlds; one he fears to enter and one he cannot return to. Holden's refusal to face the adult world leads him to isolation and the realization that he has to mature. The museum of natural history displays how Holden is stuck between childhood and...
Words: 565 - Pages: 3