Elements of Porters Generic Strategies Competitive advantage:
Matrix mapping strategic tarket market and competitive advantage
Principle:
Describe how a company pursues competitive advantage across its chosen market scope – to maximize profit
Issues:
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
Applications:
To analyse and determine competitive strategy
Source of Porters Generic Strategies Competitive advantage:
Porter (2004)