Twix's Generic Strategy Essay

ROTHAERMEL EXERCISE 2

Discussion Question 6.1 Generic strategies are all three concepts that can be adopted by any firm. According to Michael Porter (1980), there are three generic strategy’s, Cost Leadership, Differentiation, and Focus. Differentiation involves the creativity of product used for some unconventional products. The drawbacks to the differentiation strategy are once the firm has a competitive advantage, the fair market value price of goods sold becomes too pricey, thus the resurrection of the smaller firms is reborn. Next, the cost-leadership strategy involves the creativity for the customer by adding value to the same product. The drawback to a cost-leadership strategy is the product is sold at a much lower price. Lastly,

A firm I believe that has become extremely innovative is the Twix Incorporation. Twix is one of the leading candy manufacturers’ in the U.S. Recently, sales for the company was slow declining. Twix knew there were the big three candy manufacturers such as Snicker, Reese’s, and Hershey. Unable to outsell the big three, Twix decided to become radically innovative. Twix now competes with itself. For example, Twix commercial display several workers addressing the facts that the right or left Twix is superior or mediocre to the other. In time, past Twix used Architectural Innovation. Twix was one of the first of candy manufacturers to innovate a mixture of chocolate, caramel, and a healthy crisp cookie into a candy bar. This innovation place Twix at the top of the market as an architectural innovative

When Walmart decided to incorporate grocery stores in some location and created Supercenters they used strategy. The strategy involves a set of business objectives, plans, policies for the organization to compete, and specifies how some competitive advantages are both achieved and sustained, Ken Davis forum 1 (as cited in Inman, 2007). Next, Walmart corporates a business level strategy of differentiating, once they realized they gained an absolute advantage in the market. Walmart accomplished this by the top-bottom method, and the use of their equity by focusing on the domestic channels in the (U.S.). Thus, giving them an absolute advantage over smaller firms, who use retain earnings and debt to floating. Smaller firms, such as mom and pop stores, and small chain store, like Winn