New Article: Getting started with Porter’s Generic Strategies

In 1985, in his book Competitive Advantage: Creating and Sustaining Superior Performance, Michael Porter, outlined a set of generic strategies that could be applied to all products or services. Porter called these generic strategies "Cost Leadership" , "Differentiation" and "Focus".

Cost Leadership corresponds to the “no frills” experience, like the low-cost airline carriers, who choose the cost leadership strategy to achieve competitive advantage.

Differentiation, on the other hand, corresponds to the luxury providers, like Rolls Royce or Ferrari or Gucci, Armani or Prada. These companies provide uniquely desirable products or services to their customers.

Focus is all about market segmentation by offering a specialized product or service in a niche market.

  • What are the major differences between strategies?
  • How can you choose the right one for your company?
  • What approach would you follow?
  • Can you choose more than one approach?

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