The company is studying the following general Porter strategies; Leadership strategies, differentiation, and the cost approach. Discuss practical ways in which this financial institution can adopt a specific IT innovation to pursue two of Porter's generic strategies.

 The company is studying the following general Porter strategies; Leadership strategies, differentiation, and the cost approach. Discuss practical ways in which this financial institution can adopt a specific IT innovation to pursue two of Porter's generic strategies.

Answer. Here we will discuss practical ways in which a financial institution can adopt a specific innovation to pursue two general guardian strategies, such as cost leadership and differentiation strategy. Nowadays, it is imperative to embrace IT innovations and many other technological developments to be able to cope with emerging market trends. Given the competition, it is imperative to embrace IT innovations to follow generic strategies and to ensure that the business can achieve the level of success it has already determined. Therefore, here we shall be discussing innovation to pursue cost leadership and differentiation strategy for a firm to achieve its level of success which it has already decided upon. Cost leadership strategy: - IT innovations/technology has an important and inevitable role in cost leadership strategy because, with the emergence of new technological innovations, companies can reduce the cost of maintaining better cost leadership in the organization by reducing manual labor. Reducing and replacing manual labor with IT communication devices reduces unnecessary payments, thus maintaining cost leadership in the company. Hans IT innovation plays an important role in increasing costs. Difference strategy: - In the current moment of competition, the company must be unique and different in other ways, because to achieve this mission, innovations in information technology play a vital role because with the emergence of new innovations, technology companies can distinguish products and services very quickly. Carry out technical research on competitors. Through a differentiation strategy, a company can stand out uniquely in the market. Therefore, IT innovations play an important role in the differentiation strategy.

Porter's common strategy can be used to determine the direction (strategy) of the organization. Organizations can choose four policies. The four strategies available are cost leadership. Differentiation. Focus on cost. It consists of three strategies: cost leadership, differentiation and concentration. It divides the latter into a focus on cost and a focus on differentiation. The biggest risk to pursuing a cost driving strategy is that these cost-cutting sources are not unique to you, and other competitors will emulate your cost-cutting strategy. Therefore, it is important to constantly find ways to reduce each cost. 1. Porter's General Strategy (Competition) 1 Markets and Competition. Michael Porter's competitive advantage book is the foundation of a modern business strategy. 2 Policy. Each is an example of a common strategy designed by Porter. 3 Driving costs. This strategy usually consists of an organization trying to gain market share by attracting customers or consumers interested in cost or cost conscious. Summarize Porter's overall strategy. Porter's common strategy can be used to determine the direction (strategy) of the organization. Organizations can choose four policies. The four strategies to choose from are: cost leadership; differentiation; focus on cost; and a focus on differentiation. Porter's overall competitiveness strategy (competition method) determines the relative position of a company within its industry whether the company's profitability is higher or lower than the industry average.