Discuss the types of generic strategies given by michael porter
Answers
Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized service in a niche market). He then subdivided the Focus strategy into two parts: "Cost Focus" and "Differentiation Focus."
Answer:
There are three main streams for Michael Porter's Generic Strategies which are:
1.Cost leadership
2.Differentiation
3.Focus
Explanation:
These main strategies are divided into 5 types:
1. Low Cost -Strategy - It is a cost leadership strategy. A firm sets out to become the lowest-cost producer in its industry. Due to the low cost, the firm will be able to offer products and services to wide range of customers at low prices.
2. Best Value-Strategy - It offers products and services to customers at the best price value available in the market.
3. Differentiation -differentiation refers to offering additional or unique benefits in a product that is perceived as a differentiating factor by the customers. Some of the ways to differentiate a product from others are the introduction of new technology, new image, and better customer service, etc.
4. Focus- Low Cost -He clearly explained that a firm can get a competitive advantage over other firms by focusing on a specific segment of the mark. It offers product to a small range of customers at the lowest price available in the market
5. Focus -Best value -He clearly explained that a firm can get a competitive advantage over other firms by focusing on a specific segment of the mark. It offers products to a small range of customers at the Best price value available in the market.