Sample Business Studies Paper on Business Strategy

There are notable similarities and differences between Porter’s generic strategy and the one proposed by Miles and Snow. First, both of these strategies advocate for marketing research characterized by flexible mechanisms, a decentralized structure. Porter’s differentiation strategy expounds on the need for marketers to research about the products offered within a market niche.  Thereafter, a business can differentiate its products by changing the physical characteristics, making customers perceive and associate significant differences with a change in quality. It is revealed that customers may be willing to pay averagely or high for the products (Alegre, Sengupta, & Lapiedra, 2013). Similarly, the prospectors’ strategy proposed by Miles and Snow encourages businesses to learn about the markets, search for new opportunities, and experiment with potential feedback in line with changing market dynamics. Then, these businesses should create unique changes and uncertainty in the products to outperform their competitors.

Porter’s low-cost ownership strategy and Miles and Snow’s defender strategy emphasize efficiency with firm cost control. As such, Porter’s low-cost advocates for a business to align to low-cost levels by pursuing and serving a narrow market niche.  It is demonstrated that a business pursuing a low-cost strategy cannot fulfill the myriad unique needs of customers (Cerchione & Esposito, 2017). This is similar to Miles and Snow, whose management operates along their area of specialization and avoids searching areas outside their domains to create new opportunities.

The differences exist as Miles and Snow’s analyzer strategy is unique from Porter’s strategy because it allows a business to balance prospector and defender strategy into one. It is opined that a business can pursue new opportunities while still aligning to a specific domain of the industry using Miles and Snow’s strategy (Gnjidić, 2014). The combination of the strategies lacks in Porter’s approach that cannot balance between differentiation and low-cost approaches. Hence, under Porter’s approach, a business can only decide to differentiate products in myriad domains or limit costs by serving a specific market. In addition, Miles and Snow’s reactor strategy is ambiguous, while Porter’s approaches are well-defined.

The Miles and Snow strategy is best suited for start-ups. Using the defender’s strategy, managers of start-ups, usually small businesses, can focus on specific markets while seeking new opportunities for growth using the prospector strategy. Porter’s strategy is suited to big businesses that satisfy most of the market niche. These businesses create new products and unique opportunities using the differentiation strategy; as such, the businesses can access the latest scientific capabilities and breakthroughs.

 

References

Alegre, J., Sengupta, K. & Lapiedra, R. (2013). Knowledge management and innovation

performance in a high-tech SMEs industry. International Small Business Journal, 31(4), 454-470.

Cerchione, R. & Esposito, E. (2017). Using knowledge management systems: A taxonomy of

SME strategies. International Journal of Information Management, 37(1), 1551-1562.

Gnjidić, V. (2014). Researching the dynamics of Miles and Snow’s strategic typology.

Management: Journal of Contemporary Management Issues, 19(1), 93-117.