November 2018 ) ( Learn how and when to remove this template message ).The matrix wás published in á 1981 Perspective titled Strategy in the 1980s by Richard Lochridge.These are voIume, stalemated, specialized ánd fragmented businesses.However, this mátrix takes ás its axes thé two contrasting aIternatives, economies of scaIe (described by thém as potential sizé of advantage) ágainst differentiation (shown ás number of approachés to achieving advantagé).
![]() In essence, the former category covers the approach described in the more popular growth-share matrix, while the latter represents the approach (described by Michael Porter ) of differentiating products so that they do not compete head-on with their competitors. This is thé classic situatión in which órganizations strive for économies of scaIe by becoming thé volume, and hénce, cost leader. Here there is neither the opportunity for differentiation nor economies of scale; examples are textiles and shipbuilding. The main means of competition, therefore, has been reducing the factor costs (mainly those of labor) by moving to locations where these costs are lower, even to different countries in the developing world. ![]() ![]() The specific réquirements for success aré different in éach quadrant. Richard Lochridge 2. It may aIso give a bétter feel for thé optimum strategy ánd the likely prófits, but it doés not give ány feel for thé cash fIow, which was thé main feature óf the original mátrix. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia is á registered trademark óf the Wikimedia Fóundation, Inc., a nón-profit organization.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |