Importantly, the authors also investigated the organizational factors that have facilitated SIA's chance to implement its inspirations; they used the method of illustrating its strategic position. Finally, they drew their conclusions and explored the prospective challenges for SIA.
The authors reviewed the available literature that investigated the differentiation and cost leadership, they referred to the work of (Porter, 1985) who claimed that differentiation and cost leadership has to be mutually exclusive as they require various kinds of investments across the value chain. Porter's recognized generic strategy framework and suggests that companies when looking for sustainable competitive advantage they must choose between a cost-leadership or differentiation approach, alongside with a preference about the scope of the market they are seeking to compete in. Porter argued that if a company tries to apply both would lead to inconsistency and the achievement of neither strategy. And as a result the company would be "stuck in the middle" (Porter, 1985). Since each selection should be supported and applied through relevant resource allocation decisions and other strategic actions. However, the authors have argued that SIA has effectively blended differentiation regarding market positioning and quality of offering, with a low-cost strategy regarding internal operational costs to achieve greater results. ...Show more