The Impact of Porter’s Generic Model on Organizational Performance: A Case Study Of Westcon Group

Abstract

The study objective was to examine the impact of Porter’s generic model on organizational performance of Westcon Group. This study aimed at assessing the impact of cost leadership strategy on organizational performance, determine the impact of differentiation strategy on organizational performance and examine the impact of focus strategy on organizational performance of Westcon Group. The study adopted a descriptive correlation research method design to establish the impact of strategic management on organizational performance with a focus on Westcon Group. The descriptive research method focuses on the relationship between variables hence was the best for this study as it featured the relationship between strategic management and organizational performance. The study used questionnaires to get data from respondents. The study focused on 320 employees at Westcon Group. A sample size of 96 respondents comprising of the company’s top, middle, lower level managers and support staff was arrived at using a proportionate stratified sampling technique. The use of structured questionnaire helped the researcher to utilize descriptive and inferential statistics during data analysis and presentation. The study adopted frequencies; mean and standard deviation, and regression statistics. Figures and tables helped in data presentation. The first variable of the study was to determine the effect of cost leadership strategy on organizational performance. The study found that due to cost leadership, Weston has set of skills recognized as unique by competitors. The strategy has enabled the company to provide goods and services at the lowest relative to its competitors hence cost leadership strategy has enabled Weston to developed winning reputation in the industry. It was found from the study that cost leadership has enabled the company to achieve efficiency in its operations hence the company maintains the quality of its offerings despite its expansion. Reduction in the cost of operations has made the company to outperform its competitors in the market and achieved competitive advantage in the industry. The study revealed that Westcon Group has maintained its customer base due to the quality of its products and services. The study revealed how differentiation strategy impact on organizational performance. The study found that differentiation has led to the creation of new products and services. It is revealed from the study that differentiation strategies allow Weston employees to make operational decisions. The study revealed that Value is delivered to Weston customers due proper differentiation strategies in the company. Differentiation strategy has made the company to accept responsibilities for improvement of the organization. Due to differentiation strategies in the company, the leadership of Weston encourages innovation and creativity. The study found that the strategy has made the company to offer new products and services regularly. The differentiation strategy makes the company create vision and carry the same to completion. The study examined the impact of focus strategy on organizational performance of Westcon Group. The study reveals that through the use of focus strategy, Westcon group has been able to enjoy a high degree of customer loyalty. The study found that Focus Strategy has made the company focus on serving a narrow market segment and that is why it is performing better. Focus strategy has made Weston employees work together to deliver results and that the company has achieved great sales due to the strategy. From the study, it was observed that due to focus strategy, employees at Weston have been equipped with the right skills to achieve the organizational objectives. This is due to the fact that learning is being shared all through the organization. Focus strategy has made internal and external communication at the organization efficient and this has made the company to enhance return on investment.