Page 38 - Stakis Consolidated Teaching Note
P. 38
Products
Present New
-Do Nothing -Product
Present -Withdraw Development
-Consolidation
-Market
Penetration
Market -Market -Diversification
New Development
Once a company has its generic strategy it must then
consider how to pursue that strategy.
Sir Lewis and David Michels defined Stakis’ core
businesses. They sold the non-core businesses and
gradually made additions to the core - cherry picking.
They had identified hotels and casinos as the activities
where Stakis had its greatest competitive advantage and,
having assured short-term survival, now looked to the
future. Porter would tend to agree with their approach
which accords with his view that, “The fundamental basis
of above average performance in the long run is
sustainable competitive advantage.”
