Answer to Question #240773 in Management for adelinas

Question

Compare Porter's three generic strategies.

Answer 1

Porter's three generic strategies are cost leadership, differentiation, and focus or niche strategies. Cost leadership strategy focuses on establishing competitive advantage using cost frameworks, i.e., low operation cost and producing high-quality goods. Differentiation strategy creation of different products in the market to identify from competitors, the products of services are made unique and attractive than others in the market. Focus strategy also differs from the other strategies; in this case, a company focuses on a specific niche by analyzing trends in the market and identifying customers' particular needs.