OM chapter2 - Chapter 2 the global environmental and operations strategy Home work Name Tassbeeh Reyad Abu-Nada(8140203 Class Sunday 5-8 2.2 Porter

OM chapter2 - Chapter 2 the global environmental and...

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Chapter 2: the global environmental and operations strategy- Home workName: Tassbeeh Reyad Abu-Nada (8140203) Class: Sunday 5-82.2 Porter wrote in 1980 that strategy target either cost leadership, differentiation, or focus. These are known as Porter's three generic strategies and can be applied to any size or form of business. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources. Porter's generic strategies detail the interaction between cost minimization strategies, product differentiation strategies, and market focus strategies.Porter described an industry as having multiple segments that can be targeted by a firm. The breadth of its targeting refers to the competitive scope of the business. Porter defined two types of competitive advantage: lower cost or differentiation relative to its rivals. Achieving competitive advantage results from a firm's ability to cope with the five forces better than its rivals. Porter wrote: "achieving competitive advantage requires a firm to make a

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