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Generic Strategies

The document discusses three generic competitive strategies: overall cost leadership, differentiation, and focus. It explains that firms must choose a strategy to achieve competitive advantage and cannot try to be all things to all people. The strategies are defined as making standardized products cheaply, making unique products that command higher prices, or focusing on a particular customer group or market segment.

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Rashi Verma
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33 views11 pages

Generic Strategies

The document discusses three generic competitive strategies: overall cost leadership, differentiation, and focus. It explains that firms must choose a strategy to achieve competitive advantage and cannot try to be all things to all people. The strategies are defined as making standardized products cheaply, making unique products that command higher prices, or focusing on a particular customer group or market segment.

Uploaded by

Rashi Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Generic Strategies

Need for a Competitive Strategy


Competitive advantage is at the heart of any strategy
Achieving competitive advantage requires the firm to

make a choice - the type of competitive advantage it


seeks to attain and the scope within which it will attain
it.
Being ALL THINGS TO ALL PEOPLE is a sign of
strategic mediocrity

Three Generic Strategies


Porter has identified three generic strategies:
overall cost leadership (i.e., making units of a fairly

standardized product and under-pricing everybody


else);
differentiation (i.e., turning out something customers
perceive as uniquean item whose quality, design,
brand name, or reputation for service commands
higher-than-average prices); and
focus (i.e., concentrating on a particular group of
customers, geographic market, channel of
distribution, or distinct segment of the product line).

Basis of Strategy
Strategic
target it
is
aiming
at

Strategic
advanta
ge it will
get

Competitive Strategies
COMPETITIVE ADVANTAGE

Cost Leadership

Differentiation

Focus

Stuck in the Middle

Sustainability

Risks of Generic Strategies

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