Question

3. Create a new framework to examine generic strategies using different dimensions than the two offered by Porter’s framework. What does your approach offer that Porter’s does not?

Answer 1

Explanation:

A company also chooses one of two types of scope, either focus (offering its products to selected segments of the market) or industry-wide, offering its product across many market segments. The generic strategy reflects the choices made regarding both the type of competitive advantage and the scope.

Answer 2

Create a new framework to examine generic strategies using different dimensions than the two offered by Porter’s framework.

• There are three fundamental strategy options open to firms for attaining a competitive edge, according Porter's Generic Strategies model. Cost leadership, differentiation, and focus are these.
• In 1980, Michael Porter identified three general tactics that a business could employ to acquire a competitive edge. Cost leadership, differentiation, and focus are these three.
• Whether a company's profitability is higher or lower than the industry average depends on where it stands in relation to other businesses in the same sector. Sustainable competitive advantage serves as the essential foundation for long-term profitability that is above average.
• Three basic approaches to positioning a company competitively within an industry are referred to as generic strategies: cost leadership, differentiation, and focus. Michael Porter initially introduces the idea of generic strategy in his book Competitive Advantage (1985).
• Companies using this type of strategy typically charge their items more than rivals due to their distinctiveness. Apple, Harley-Davidson, Nespresso, LEGO, Nike, and Starbucks are a few examples of businesses with distinctive goods and services.
• Differentiation, Cost Leadership, Focus (Cost), and Focus are the four competitive strategy categories that make up Porter's Generic Strategies (Differentiation).
• The five general business strategies are client intimacy, focus or market niche, differentiation, cost competition, and scope.

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