In the case of the small firm, it could mean the adoption of. Focused cost leadership and focused differentiation. Advantages and disadvantages of focus groups todays market researcher has an embarrassment of tools available to them, yet one research option has stood the test of time the focus group. In focus group discussion investigators interview people with common qualities or experience for eliciting ideas, thoughts and perceptions about particular subject areas or certain issues associated with an area of interest. Focus group is an important research method, here we list the advantages and disadvantages of such research method. Advantages and disadvantages of the focused strategies. A diversification strategy that enables a company to operate in a number of different markets reduces the risk of overall failure.
Advantages and disadvantages of focus groups a focus group discussion is an interaction among one or more experts and more than one individual with the intention of gathering data. Process focused strategy pros cons advantages greater product. Indeed, these firms often price their goods far above the general, following a differentiation strategy. Techniques for analyzing industries and competitors, management expert michael porter outlined his generic strategies of business. List of the advantages of a strategic business unit structure 1. Focus groups typically involve a moderatorled group discussion with between eight and 10 people. The benefits of a processfocused organization social media. Advantages and disadvantages of strategic planning howandwhat.
Created using powtoon free sign up at youtube create animated videos and animated presentations for free. For example, a company like colgate that sells a widely used household product like toothpaste benefit from a. Using the sbu structure allows for diversification, products with a specific focus, and fewer distractions from within the competitive market. A key market research tool, focus groups are often used in order to gain a better insight into different behaviours and opinions of consumers regarding products, brands and services. How is competitive advantage used in focus strategy. Mar 26, 2017 created using powtoon free sign up at youtube create animated videos and animated presentations for free.
In the case of focus differentiation, very high prices can be charged. Strategic management advantages and disadvantages wisestep. It has become the subject of important methodological discussions and it is now considered a very innovative research method. Being able to work face to face with a range of people, of different demographics can give a more real insight into their opinions and help businesses to get to know their customers better.
An organization can be confident that its strategy has resulted in one or more useful competitive advantages only after competitors efforts to duplicate its strategy have ceased of. Benefits of focus strategy focus strategy is a form of marketing strategy where an organization concentrates all its resources mainly on expanding or entering a narrow industry segment or market. The general unfixed nature of business demands new growth because of changing legislation, global competition, and market saturation. Oct 05, 2017 advantages and disadvantages of focus groups todays market researcher has an embarrassment of tools available to them, yet one research option has stood the test of time the focus group. All three generic strategies are designed to achieve distinction relative to a rival. Focus groups allow businesses to directly engage with their customers. Advantages and disadvantages of scenario approaches 221 speak for itself in terms of its purpose. Without a processfocused organization, employees are stomping out fires, missing out on opportunities, and generally wasting time and money because of poor planning and lack of vision. It is normally used where the organization knows a specific segment and it already has the products for competitively satisfying the set requirements. However, the management and resource requirements of operating in multiple markets may mean that companies do not focus on their most profitable sectors. The corporate strategy in these cases is about the basic direction of the firm as a whole. Dec 30, 20 focus is the easiest and least costly of the three strategies for most companies. The toplevel strategy can be cascaded to the lower levels.
Know the advantages and disadvantages of focus strategies. Advantages of strategic management management guru. Strategic management essentially means the implementation and formulation of various strategies in order to achieve the goals of the company. Understand how economies of scale help contribute to a cost leadership strategy. Figure 1 advantages and disadvantages of the focus group. In a focus group discussion, the interviewer talks to a group of people about their thoughts, opinions, beliefs, and attitudes towards a topic. Advantages and disadvantages of synchronous online focus groups. In the case of focus differentiation, one advantage is that very high prices can be charged. A growing literature on the setting up and running of focus groups for social. Advantages and disadvantages of the focused strategies open. What are the advantages and disadvantages of a focus strategy posted 3 years ago. Following are the main advantages of focus group discussion in research. A focus strategy is one where a company decides to concentrate the resources of its marketing strategy on either expanding into a narrow market or segment or by entering it in the first place. Strategic management focus strategies tutorialspoint.
It helps organisations carry out a comprehensive assessment of its environments and develop and implement strategies in line with them. As said the discussions are controlled by the moderator. Differentiation focus is a bit more feasible, because it is a match between a niche provider with specific expertise and a narrow market with particular needs. However, putting criticisms aside, strategic planning plays an important role in organisations. With the use of his generic strategy model, a firm, understanding where its competitive advantage lies, can then formulate and implement an. Advantages focus group brings interaction between participants highlights their view of the world. Strategic management involves formulation and implementation of the major goals and plans taken by a companys top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Each generic strategy offers advantages that firms can potentially leverage to enjoy strong performance, as well as disadvantages that may damage their performance. What are the two basic strategy options for creating a competitive advantage. May 29, 2017 to sumup, advantages and disadvantages of strategic planning are very clear as outlined above.
The departments and business units can have their own strategy scorecards aligned with overall strategy. Broad differentiation strategy is pursued by companies seeking to stand out as unique. It explains to the stakeholders of different levels how their efforts contribute to the overall strategy. An organization can be confident that its strategy has resulted in one or more useful competitive advantages only after competitors efforts to duplicate its strategy have ceased of failed. Focus groups have long been used in marketing, urban planning, and other social sciences. Focus is the easiest and least costly of the three strategies for most companies. Many small companies use this strategy to gain advantages over large chain competitors. Companies that use a cost leadership strategy and those that use a differentiation strategy share one important characteristic. These seem appealing because they are the closest online equivalent to facetoface focus groups. Case study research, like all other research, complements the strengths and limitations of other types of research. In this lesson, youll learn more about the strategy and some businesses using it successfully. The moderators control the discussion as per his or her experience. A firm has a competitive advantage when it implements a strategy competitors are unable to duplicate or find too costly to imitate. Participants are typically a group who are similar in some way, such as income, education, or career.
Yin 2009 however, stresses that case studies have both advantages and disadvantages as a research method, and that it is important to understand and acknowledge that fact. Advantages and disadvantages of pdf format logaster. These three broad types of competitive strategies have also been labeled generic strategies. Companies can diversify their business by offering new products to existing customers or entering new markets with existing products or new products. Here is a look at the advantages and disadvantages that come with this type of structure. In the case of differentiation, a key advantage is that effective differentiation creates an. Forming sbus may not be right for everyone business. For example, a company like colgate that sells a widely used household product like toothpaste benefit from a successful undifferentiated targeting strategy. To sumup, advantages and disadvantages of strategic planning are very clear as outlined above.
Process focused strategy pros cons advantages greater. Diversification is a form of corporate strategy designed to improve opportunities for growth and profitability. The impression is that fg is often adopted without any prior consideration of whether it. The focus group fg technique has been recently rediscovered by social scientists. This is the detailed initiative which is taken by the top management these strategic decisions are taken on the basis of available resources they also take into consideration the effects of the. When you focus on a narrow target market, you have the best chance to become the leader of that niche. Advantages and disadvantages of scenario approaches for. Scenarios, as a prime technique for future studies, have long been used by government planners, corporate managers and military analysts as powerful tools to aid in decision making in the face of uncertainty. A successful diversification strategy can help a company.
However, such a widespread use of fg seems to have become a fashionable research technique. Available under creative commonsnoncommercialsharealike 4. Jan 19, 2016 each generic strategy offers advantages that firms can potentially leverage to enhance their success as well as disadvantages that may undermine their success. Michael porter, believed that the basis for this advantage falls under 3 base strategies of cost leadership, differentiation and focus. Whereas low cost and differentiation are aimed at achieving their objectives industry wide, the focus or niche strategy is built on serving a particular target customer, product, or location very well. The benefits of a processfocused organization social. We look now at the advantages and disadvantages of each.
Whether you introduce the studentcentred pedagogy as a onetime activity or mainstay exercise, grouping students together to solve openended problems can present pros and cons below are five advantages and disadvantages of problembased. Advantages of conducting a focus group interview are the flexibility in questioning, the encouragement of dialogue and exchange of ideas, the generation of hypotheses, being relatively fast and inexpensive and producing findings in a form that most users fully. These are the basic options your company has in entering and successfully competing in a given industry. Firms that compete based on price and target a broad target market are following a cost leadership strategy. What are the advantages and disadvantages of focus group. We have already briefly mentioned this format in this article image file formats jpeg, png, svg, pdf. The use of focus groups in social science research focus groups originated in sociology merton and kendall 1946 were primarily used by market researchers in recent years templeton 1987 and are increasingly being used as a research tool in the social sciences. Jan 19, 2016 available under creative commonsnoncommercialsharealike 4. Used since the 1960s, many teachers express concerns about the effectiveness of problembased learning pbl in certain classroom settings. Firms often develop exemplary expertise about the goods and services that they offer in focused strategies. Advantages and disadvantages of differentiation open. Participants are typically a group who are similar in some. Advantages and disadvantages of porter s generic strategy.
So, above are some of the advantages of the focus groups. Each generic strategy offers advantages that firms can potentially leverage to enhance their success as well as disadvantages that may undermine their success. If the focus groups provide advantages, it also provides some of the disadvantages. There are three marketing ways you can sustain a competitive advantage with a focus strategy. Explain what is meant by the term focus strategy 3. Advantages and disadvantages the research in management, especially in marketing, frequently considers focus group and other qualitative methods as exploratory tools, its results needing to be verified by a quantitative study, in a representative sample. If there are disadvantages to focus strategy, it might include limited growth potential, in terms of customer base and sales, due to the niche market youve decided to target.
Focus group discussions are a common qualitative research strategy. Advantages provides additional profitability with little initial investment provides method of circumventing tariffs, quotas, and other export barriers attractive roi low costs to implement disadvantages limited participation returns may be lost lack of control licensee may become competitor licensee may exploit company resources global. In addition, undifferentiated marketing campaigns come with lower costs for advertising and marketing due to their broad focus, thus saving even more money. There could be a small businesses or involved in a single business or a large, complex and diversified conglomerate with several different businesses. Coworkers and friends are more comfortable in voicing views in each others company than on their own with the researcher. Online focus group advantages and disadvantages mrqual. Advantages and disadvantages strategy advantages disadvantagesinternational transfer distinct competencies lack local responsiveness lack location economies cant exploit exp. Advantages, disadvantages and reasons for use article pdf available in ssrn electronic journal january 2009 with 4,093 reads how we measure reads. Know the advantages and disadvantages of a cost leadership strategy. Advantages and disadvantages of undifferentiated marketing. Focus groups typically involve a moderatorled group. One strategy map with some supporting documentation can include all the details needed for effective strategy execution. Describe the nature of focused cost leadership and focused differentiation. Advantages and disadvantages of focus groups in research.
810 1050 205 1433 1252 1200 979 1618 763 1052 267 255 537 877 162 47 1194 1176 319 1259 90 712 1219 1122 908 1412 628 978 1044 820 1094 983 812 343