Elements of Porters Generic Strategies Competitive advantage:

Matrix mapping strategic tarket market and competitive advantage


Describe how a company pursues competitive advantage across its chosen market scope – to maximize profit


Choices to be made regarding both the type of competitive advantage and the scope, business focus

Number of segments to be determined as focused

Cost leadership = only one company – not low price determined – often market share and economy of scale is driver

Differentiation = unique products or unique service – only to add value that matters

Combination of more strategies – some argue cost leadership is only competitive

Hendry, 1990 – questions the theory – customer perspective is price and demand valuation


To analyse and determine competitive strategy

Source of Porters Generic Strategies Competitive advantage:

Porter (2004)