Concept - Scope & Uniqueness Strategies

Concept - Scope & Uniqueness Strategies - Porter's...

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Porter's Generic Strategies A firm positions itself by leveraging its strengths. Michael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership , differentiation , and focus . These strategies are applied at the business unit level. They are called generic strategies because they are not firm or industry dependent. The following table illustrates Porter's generic strategies: Porter's Generic Strategies Advantage Target Scope Low Cost Product Uniqueness Broad (Industry Wide) Broad Low Cost Strategy Broad Differentiation Strategy Narrow (Market Segment) Focus Low Cost Strategy Focus Differentiation Strategy Differentiation Strategy A differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition. The value added by the uniqueness of the product may allow the firm to charge a premium price for it. The firm hopes that the higher price will more than cover
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This note was uploaded on 04/12/2011 for the course MKT 352 taught by Professor Cowart during the Fall '11 term at Grand Valley State University.

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Concept - Scope & Uniqueness Strategies - Porter's...

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