Question 1

Porter says that Strategy is even more important in a recession, but the paradox of the downturn is that people will look to do what’s necessary to survive, for example, a company who differentiates based on quality of service will feel the pressure of buyers who have become more price sensitive exerting pressure on price and may look to change their strategy in order to compete with others already offering low cost products, but it’s essential that companies don’t over react to the downturn. There may be some short term strategies that fit within a longer term strategy that will satisfy the initial need, while still staying on track. For a company looking to develop a strategy, the most popular approach has three step, which can be “position, choices, actions” or “analysis, development, implantation” – essentially it’s asking where are we now, what can we do and how can we do it.

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