PORTER’S GENERIC STRATEGIES IN THE CONTEXT OF HOMEGROWN RESTAURANTS IN SANTIAGO CITY
Article Sidebar
Main Article Content
Abstract
As demand in the food sector increases, it is essential to pinpoint effective strategies that can secure the success of food service establishments. Michael Porter’s model of generic competitive strategies—encompassing cost leadership, differentiation, and focus—remains a widely recognized framework for crafting competitive strategies. In Santiago City, Isabela, known as the Commercial and Industrial Center of Cagayan Valley, the food service industry has seen significant growth in recent years. However, the methods by which local food service providers thrive in this competitive environment have not been thoroughly examined. This study explores the characteristics of homegrown restaurants and cafes, including their business profiles and the extent to which they implement Porter’s generic strategies, as well as the differences in how they apply these strategies. Employing a descriptive-inferential design, the research collected quantitative data to create a detailed business profile and assess the adoption of Porter's generic strategies. The findings indicate that the sector is primarily composed of small-scale enterprises with simple business structures and limited financial and human resources. These businesses effectively utilize Porter’s generic strategies, focusing on innovation and customer satisfaction through differentiation while also capitalizing on cost leadership to realize economies of scale. Furthermore, significant variations in strategy implementation were found based on factors such as years of operation, capital structure, legal framework, and workforce size, particularly in cost leadership and differentiation practices.
Article Details
Section
How to Cite
References
Abdulwase, R., Ahmed, F., Nasr, F., Abdulwase, A., Alyousofi, A., & Yan, S. (2020). The role of business strategy to create a competitive advantage in the organization. Open Access J Sci, 4(4), 135-138. https://doi.org/10.15406/oajs.2020.04.00162
Ahmed, S. S., Guozhu, J., Mubarik, S., Khan, M., & Khan, E. (2020). Intellectual capital and business performance: the role of dimensions of absorptive capacity. Journal of Intellectual Capital, 21(1), 23-39. https://doi.org/10.1108/jic-11-2018-0199
Ali, B. J., & Anwar, G. (2021). Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. Ali, BJ, & Anwar, G.(2021). Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. International Journal of Advanced Engineering, Management and Science, 7(6), 42-51. https://doi.org/10.22161/ijaems.76.5
Alvarez, M. T. S. (2020). Marketing Strategies of Food Service Industry in the Province of Isabela, Philippines. Test Engineering and Management, 83, 1736-1749. https://www.researchgate.net/profile/Ma-Teresa-Alvarez/publication/355191720_Marketing_Strategies_of_Food_Service_Industry_in_the_Province_of_Isabela_Philippines/links/6271f009b1ad9f66c89eaf6d/Marketing-Strategies-of-Food-Service-Industry-in-the-Province-of-Isabela-Philippines.pdf
Ateljević, J., Kulović, D., Đoković, F., & Bavčić, M. (2023). Business Strategy and Competitive Advantage: A Reinterpretation of Michael Porter’s Work. Taylor & Francis.) https://doi.org/10.4324/9781003359173
Badorf, F., Wagner, S. M., Hoberg, K., & Papier, F. (2019). How supplier economies of scale drive supplier selection decisions. Journal of Supply Chain Management, 55(3), 45-67.
Dingil, D. J. S., Laforteza, D. I. I., Pagulayan, J. C. B., Velasco, R. D., & Catacutan, K. J. A. (2023). Operational Problems and Strategies of Restaurants in Northern Philippines. Formosa Journal of Multidisciplinary Research, 2(2), 453-480.
Gichohi Njeri, G. R. A. C. E. (2018). Determinants Of The Family Owned Hotel And Restaurants Businesses Growth: A Survey Of Nanyuki Town (Doctoral Dissertation, Mua).https://www.researchgate.net/publication/363108232_Agbim_et_al_Family_involvement_and_performance_of_family-owned_restaurants_in_Abuja_FAMILY_INVOLVEMENT_AND_PERFORMANCE_OF_FAMILY-OWNED_RESTAURANTS_IN_ABUJA
https://doi.org/10.1111/jscm.12203
https://journal.formosapublisher.org/index.php/fjmr/article/view/3103
Hossain, M. S., Kabir, S. B., & Mahbub, N. (2019). Competitive strategies and organizational performance: determining the influential factor conquer over the Rivals in the Food Industry of Bangladesh. International Review of Management and Marketing, 9(3), 100. https://doi.org/10.32479/irmm.8109
Kadenyeka, J., & Mwasiaji, E. (2023). Business level strategies and performance of selected supermarkets in Nairobi City County, Kenya. International Academic Journal of Innovation, Leadership and Entrepreneurship, 2(3), 486-503. https://ir-library.ku.ac.ke/bitstream/handle/123456789/27379/Business%20Level%20Strategies%20and%20Performance%20of%20Selected%20Supermarkets%20....pdf?sequence=1
Knezović, E., & Hamur, A. (2022). Porter’s Business Strategies and Business Performance in SMEs. Entrepreneurial Innovation: Strategy and Competition Aspects, 7-23. https://doi.org/10.1007/978-981-16-4795-6_2
Li, L., Wang, Y., & Zhang, Y. Y. (2023). A critical examination of M&S's current strategic and marketing position, as well as potential sustainable competitive marketing strategies. International Journal of Science and Business, 18(1), 108-117. https://www.researchgate.net/profile/Le-Li-61/publication/367559196_A_critical_examination_of_MS's_current_strategic_and_marketing_position_as_well_as_potential_sustainable_competitive_marketing_strategies/links/63d899af62d2a24f92deffb2/A-critical-examination-of-M-Ss-current-strategic-and-marketing-position-as-well-as-potential-sustainable-competitive-marketing-strategies.pdf
Liu, W., & Atuahene-Gima, K. (2018). Enhancing product innovation performance in a dysfunctional competitive environment: The roles of competitive strategies and market-based assets. Industrial Marketing Management, 73, 7-20
Ngo, Q. H. (2023). The effectiveness of strategic alignment between open innovation and generic strategies: Empirical evidence from restaurant SMEs in Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 9(1), 100016 https://doi.org/10.1016/j.joitmc.2023.100016
Radziwon, A., & Bogers, M. (2019). Open innovation in SMEs: Exploring inter-organizational relationships in an ecosystem. Technological Forecasting and Social Change, 146, 573-587. https://doi.org/10.1016/j.techfore.2018.04.021
Sajdakowska, M., Jankowski, P., Gutkowska, K., Guzek, D., Żakowska‐Biemans, S., & Ozimek, I. (2018). Consumer acceptance of innovations in food: A survey among Polish consumers. Journal of Consumer Behaviour, 17(3), 253-267. https://doi.org/10.1002/cb.1708
Slavik, S., Hanak, R., & Hudakova, I. M. (2020). Natural and generic strategies of start-ups and their efficiency. Journal of Competitiveness, (2). https://doi.org/10.7441/joc.2020.02.08
Ying, Q., Hassan, H., & Ahmad, H. (2019). The role of a manager’s intangible capabilities in resource acquisition and sustainable competitive performance. Sustainability, 11(2), 527. https://doi.org/10.3390/su11020527