Porter's Generic Strategies

Porter's Generic Strategies - Vista, Erica Mae 2AAC...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Vista, Erica Mae 2AAC According to the Competitive Advantage model of Porter, a competitive strategy takes offensive or defensive action to create a defendable position in an industry, in order to cope successfully with competitive forces and generate a superior Return on Investment . According to Michael Porter, the basis of above-average performance within an industry is sustainable competitive advantage. 2 BASIC TYPES OF COMPETITIVE ADVANTAGE 1. Cost Leadership (low cost) 2. Differentiation Both can be more broadly approached or narrow, which results in the third viable
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
competitive strategy: 1. Focus COMPETITIVE ADVANTAGE TYPE 1: COST LEADERSHIP Achieving Cost Leadership means that a firm sets out to become the low cost producer in its industry. A cost leader must achieve parity or at least proximity in the bases of differentiation, even though it relies on cost leadership for its competitive advantage. If more than one
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/08/2011 for the course ACC. C-090786 taught by Professor Prof.bantua during the Spring '10 term at Xavier - Ateneo de Cagayan.

Page1 / 4

Porter's Generic Strategies - Vista, Erica Mae 2AAC...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online