Four Porters competitive strategies of Stones Rivers Electric Company

Due to the large number of businesses in all sectors

Each company employs a variety of techniques to ensure that they ascend to the top or maintain their standing in a particular business climate. Most business strategies are competitive in nature, and when implemented tactically, they result in an improvement in overall organization performance. Similarly, businesses might alter their attention to a cooperative approach that entails collaborating with other businesses to acquire a competitive advantage in their particular industry. Stones River Electric is a multi-award winning electric firm that offers electrical, energy, and lighting services throughout the United States (Stones Electrical, 2017). Their primary objective in delivering quality services to their clients nationwide focuses on sustainability hence cutting down unnecessary costs and improve financial benefits to the company. This paper, therefore, intends to identify and analyze the four Porters competitive strategies of Stones Rivers Electric Company and come up with various differentiation strategies that are present.

Cost Leadership

It involves reduction of cost and increasing the profit while adjusting the average prices of the industry. Moreover, an increase in the market share through charging lower prices while making reasonable profits on every single sale at a lower cost is part of cost leadership. Stones River Electric Company has aggressively indulged in the construction of facilities and used their experience in the industry to lower their cost in comparison to other competitors. The company has continuously earned profits even under stiff competition hence giving it a defense mechanism against other rival firms. Furthermore, the strategy has blocked new entries in the industry around Madison and its environs where the company is located (Stones Rivers, 2017).

Differentiation

It entails making the products and services unique and attractive in comparison to those of the competitors. Achieving this strategy depends on the nature of the industry and of goods and services involved. It, therefore, indicates that the plan must be based on what the customer value such as durability, functionality, and brand image. For instance, the company has a maintenance program undertaken regionally which has brought positive impacts on the cost of operation due to its uniqueness and the appreciation from clients (Porter, 2008).

Cost Focus

A competitive approach focuses on a particular consumer, a group or geographic market in the exclusion of others. It involves understanding the dynamics of the market and what the customers need within the market (Omanidhi & Stringa, 2008). The approach enables the companies using such strategies to build strong customer brand loyalty. Stones Rivers Electrical has concentrated on the regional level to offer lighting services such as lighting design and repairs.

Differentiation Focus

The company focuses on seeking differentiation in various market segments. The target segments must have buyers with important needs (Porter, 2008). In case the consumers or the customers do not have unique needs, the production and the delivery system serving the target market must be different from other industry segments. The company focuses on clients with special needs through offering them creative well-designed solutions that will ultimately solve their problems.

Conclusion

It is clear that success of a business largely depends on the strategy that the company put in place. Firms are capable of developing tremendous expertise about both the goods and services they offer. It is because the consumers will be only willing to pay for the products when advised with a knowledgeable staff that encourages them. Companies must, therefore, use the competitive strategies inclusively to achieve the full potential of the porter's competitive strategies.

References

Electric, S. R. (2017). National Accounts, Stones River Electric, Contractors Lighting, Electrical Contractor. Retrieved from http://www.stonesriverelectric.com/national-accounts/#/program-management

Ormanidhi, O., & Stringa, O. (2008). Porter's model of generic competitive strategies. Business Economics, 43(3), 55-64.

Porter, M. E. (2008). Competitive strategy: Techniques for analyzing industries and competitors. Simon and Schuster.