What are the 3 generic strategies?
Definition: Michael Porter developed three generic strategies, that a company could use to gain competitive advantage, back in 1980.
These three are: cost leadership, differentiation and focus..
What are the 4 competitive strategies?
Therefore, the four types of competition are cost leadership, differentiation leadership, cost focus, and differentiation focus. In a cost leadership approach, a business will generally mass produce to drive prices really low, gaining an advantage in pricing.
What are examples of competitive strategies?
EXAMPLES OF GENERIC COMPETITIVE STRATEGYWal-Mart is perhaps one of the most well-known companies that use Cost Leadership as their business strategy. … Once a fledgling computer company, Apple has set itself apart through their Differentiation strategy. … For drivers, there are a few choices: car, truck, motorcycle.
What is the best cost strategy?
A best-cost strategy relies on offering customers better value for money by focusing both on low cost and upscale difference. The ultimate goal of the best-cost strategy is to keep costs and prices lower than other providers of similar products with comparable quality and features.
What are the 5 generic competitive strategies?
4.8 MICHAEL PORTER’S FIVE GENERIC STRATEGIESType 1: Low Cost -Strategy.Type 2: Best Value-Strategy.Type 3: Differentiation.Type 4: Focus- Low Cost.Type 5: Focus –Best value.
What is Porter generic strategies used for?
Michael Porter’s Generic Strategies are a useful framework for organisations to identify a potential niche in which they can gain a competitive advantage in any industry.