Porter’s Generic StrategyFor any firm to win in the highly competitive environment of the 21st century, it is important to have a source of sustainable competitive advantage
•Cost leadership•Differentiation•FocusThe third generic strategy, he subdivided into two – cost focus and differentiation focus.There can be various sources of competitive advantages for businesses. A firm can rely on technology to reduce its production costs and can then pass this benefit on to its customers. Another firm can focus on creating a differentiated product or service to gain market share.
Differentiation for competitive advantage•There are several ways to achieve this since there can be several bases of differentiation.•Starbucks has differentiated its products based on quality and set an entirely distinct customer experience.•Apart from these things, it has created a distinct brand image which is also a basis of differentiation and helps it market its brand better than competitors.