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Management Concepts

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MANAGEMENT CONCEPTS

In the text, you were introduced to several different approaches to corporate and business strategy. One model was Michael Porter’s Generic Strategies. Miles and Snow proposed a different classification scheme.

Your task in this exercise is to analyze two companies, Virgin and Payless Shoe Source. You will find that these are drastically different companies in many respects, yet both are extremely good at what they do.

You are to determine which of the Miles and Snow strategies Virgin appears to employ.

Classify Payless using the generic strategies proposed by Porter.

You can find information about the two companies at www.virgin.com and www.payless.com.

As you analyze the two web sites, see if you can find an indication that the companies may be applying more than one strategy.

What forms of diversification, if any, do the two seem to use? (Each analysis is valued at 20 points)

It would appear that Virginia used Mills and Snow’s Analyzer strategy. Virginia.com provides a variety of services and products, including white pages, yellow pages, restaurants, national parks, movies, and weather. In addition, Virginia.com is supported by areaGuide.net, which is sponsored by localmatters.com, which provides a different type of product and service. For instance, local matter provides internet, wireless, and voice solutions. This linkage of products and services can be attributed to related diversification, where these multiple businesses are tied into one another. Yet, Virginia provides services which are all related, while it is linked to companies that provide a completely different types of product, like internet and communication oriented products.

From Porter’s Generic Strategy, it would appear that Payless uses both Overall Cost Leadership, and Focus Strategies. Payless provides a cheaper yet durable shoe,

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