Which among the following is not a generic strategy ?
Unity Strategy
Unity Strategy — option 1. No such generic strategy exists.
Porter’s generic strategies. They are called generic because they apply to any firm in any industry, and they arise from two choices: the type of competitive advantage sought, and the scope of the market targeted.
| Advantage: lower cost | Advantage: differentiation | |
|---|---|---|
| Broad target | Cost leadership | Differentiation |
| Narrow target | Cost focus | Differentiation focus |
The two focus strategies together form the third generic strategy, focus — which is what option 4 calls a niche strategy, the two terms being used interchangeably.
| Strategy | Basis | Requires | Chief risk |
|---|---|---|---|
| Cost leadership | Be the lowest-cost producer and earn above-average returns at industry prices | Scale, efficient plant, tight overhead control, experience-curve effects | Technological change wiping out the cost base; imitation |
| Differentiation | Offer something unique that buyers value, and charge a premium for it | Design, brand, quality, service, innovation | The premium exceeding what buyers will pay; the basis of uniqueness ceasing to matter |
| Focus / Niche | Serve a narrow segment better than broad-scope rivals can | Deep knowledge of the segment | The segment shrinking, or a broad competitor targeting it directly |
Why “unity” is a fabricated term. The other three options are exact Porter terminology; the first is not a strategy concept in any framework. This is the standard construction of such questions — three genuine terms and one invented one, which the candidate identifies by recognising the family the others belong to.
Porter’s warning about being “stuck in the middle” completes the framework. A firm must choose: attempting cost leadership and differentiation at once tends to produce a company that is neither cheap enough nor distinctive enough, and it earns below-average returns. Later writers have disputed this, pointing to firms — Toyota is the usual example — that appear to achieve both, and to the integrated cost leadership/differentiation strategy made possible by flexible manufacturing. But the choice remains the starting point of competitive strategy.
Hence, the answer is Unity Strategy.
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Important Questions from Strategic Management
When the organizational requirements advocate tight cost control; frequent, detailed control reports; structured organization and responsibilities and incentives based on meeting strict quantitative targets then it is called:
Which of the following strategies are types of combination strategies?
(A) No change strategies
(B) Pause/Proceed with caution strategies
(C) Turn around strategies
(D) Profit strategies
(E) Concentration strategies
As per Henry Mintsberg, which of the following is NOT a part of his conception of types of strategies?
- Strategic Management involves :
(a) Assessment of external environment
(b) Identification of subsystem
(c) Unity of command
(d) Span of control
(e) Assessment of resources and capabilities
(f) Identification of goal
Code : Put the following steps of strategic Management Process in correct sequence :
a. Scanning and Evaluation of Business Environment
b. Formulating strategies
c. Implementation of Corporate Strategy
d. Deciding about the Mission of the organisation
e. Setting Corporate Level Objective
Codes :
