Bcg matrix home depot8/22/2023 ![]() A company may use creative advertising, distinctive product features, higher quality, better performance, exceptional service or new technology to achieve a product being perceived as unique. This article will go into Porter’s Generic Strategies with the aid of examples.įigure 1: Porter’s Generic Strategies: Cost Leadership, Differentiation and Focus Differentiationĭifferentiation is a type of competitive strategy with which a company seeks to distinguish its products or services from that of competitors: the goal is to be unique. Failing to choose between one of these strategies will result in strategic mediocrity and below-average performance, or as Porter describes it: ‘being stuck in the middle’. Because, in order to be a successful company, being active in an attractive industry alone is not enough: you will need to acquire a dominant competitive position by choosing among three generic strategies: Differentiation, Cost Leadership and Focus. ![]() ![]() The second question is about the determinants of a company’s relative competitive position in an industry after a certain industry is chosen to enter. We are all familiar with the framework that Porter came up with to determine this: the Five Forces Model. The first question is about the attractiveness of industries for long-term profitability and how to choose which industry to enter as a company. Porter’s Generic Strategies is an answer to one of two central questions underlying the choices companies have with regard to competitive strategy. ![]()
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