Competative Strategies
Competative Strategies
Competative Strategies
Michael Porter has argued that a firm's strengths ultimately fall into one of two
headings: cost advantage and differentiation.
By applying these strengths in either a broad or narrow scope, three generic
strategies result:,
Cost Leadership
Differentiation
Focus
Generic Strategies
Expensive
Easy to imitate of strategy.
Temporary strategy.
Technological changes.
Differentiation Strategy
An integrated set of actions designed by a firm to produce or deliver goods or
services (at an acceptable cost) that customers perceive as being different in
ways that are important to them
Price for product can exceed what the firm's target customers are willing to
pay
Non standardized products
Customers value differentiated features more than they value low cost