Portners Generic Strategy

Question 1

What is porters generic strategy?

Answer 1

Is a framework enabling members of the management team to analyse and evaluate strategies aimed at achieving competitive advantage.

Question 2

What are the features of portners generic strategy in a broad scope?

Answer 2

Cost leadership: lowering costs in order to raise profit margins

Differentiation leadership: involves making products or services more appealing and distinct from competition

Question 3

What are the features of portners generic strategy in a narrow scope?

Answer 3

Cost focus: aimed at enabling the firm to meet the needs of the customers in a narrow market segment. The business can benefit from high profit margins while being perceived as offering good value for money

Differentiation focus: persuades cust9mers that their products are substantially different from the competitors