Focused differentiation strategy update#

Differentiation Focus - This does not mean a focus on differentiation.It means minimizing costs in a focused market. Cost Focus - This does not mean a focus on cost.Differentiation - This means making ones product unique or special, compared to other competitors or substitute products in the market.Cost Leadership - Minimizing the costs incurred in providing value (product or service) to a customer or client.In summary, the strategies were as follows: Back to: STRATEGY & PLANNING Back to: Entrepreneurship What are the Generic Strategies? However, if the firm is capable and executes a strategy sufficiently, then it can achieve a competitive advantage in the market. It is important to note that, every strategy is not possible for a single firm. Per Porter, any one of these strategies is capable of producing a competitive advantage for a business in a given market. What is the Effect of a Competitive Strategy? In his text, he proposed 3 (or 4) categories of generic strategies for approaching a product market. In 1985, he wrote the seminal text, Competitive Advantage: Creating and Sustaining Superior Performance, concerning business strategy. The study of business strategy was strongly influenced by Michael Porter, Harvard Professor, and author. How was Porter's Generic Strategies Developed? Porter's Generic Strategies is a group of four categories of competitive strategy: Differentiation, Cost Leadership, Focus (Cost), Focus (Differentiation).

Focused differentiation strategy update#

Update Table of Contents What are Porter's Generic Strategies? The Cost Leadership Strategy The Differentiation Strategy The Focus Strategy What are Porter's Generic Strategies?