Explain the Porter's generic strategies and propose marketing strategies that should be pursued by organizations to enhance performance. Support your answer with relevant examples.

MANAGEMENT THESIS
Table of Contents
Introduction to Porter's Generic Strategies    3
I. Cost Leadership Strategy    3
II. Differentiation Strategy    4
III. Focus Strategy    4
Conclusion and Proposing of Marketing Strategies    5
References    6
Introduction to Porter's Generic Strategies
Strategies are the way to plan and execute action regarding the operations of a business. It deals with future aspects of business such as the one, in which where one wants a business to be and how to get there. Michael Porter suggested three kinds of competitive strategies, which if followed, would give sustainability to a business in the longer run (Islami, Mustafa & Latkovikj, 2020). These strategies are perfect for growing MNCs, medium sized enterprises including start-ups. These strategies are designed around two dimensions namely, strategic scope and strategic strength. Strategic scope represents demand side related to size and composition of the market. Strategic strength represents supply side and core competency of the organisation. The three strategies are
(i) Cost Leadership Strategy (no frills),
(ii) Differentiation Strategy (creating unique products and services) and
(iii) Focus Strategy (offering a specialised product or service)
I. Cost Leadership Strategy
It is a strategy, which eyes on reducing costs and attaining economies of scale. Porter believed that to be at edge among your competitors and to take away sales from them there are two ways (i) reduce costs thus profits will increase or (ii) grab more market share by lowering prices and still able to make profits by reducing costs.
Thus, as viewed by Viltard (2017), these steps make an organisation an industry leader who has command over controlling costs. The cost factors, which can be controlled, vary from industry to industry. These may include technology employed or required new up-gradation in technology, sources of raw material, economies of scale, labour, facilities, logistics and capital. On the other hand the risks involved with this strategy is competitors can imitate your cost reduction model so it is highly important to constantly look for new cost reduction methods.
Example can be Southwest Airlines is famous as a low cost carrier in US. It has always targeted middle class families, students, retired pensioners as its customers. The reason is cost leadership in the industry. It minimised its operating costs, optimised profit margins and offered its services in both segments as passenger carrier and logistics...