ch05_2 - Chapter 5_2 Strategies in Action 2 Porters Five...

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Ch 5 -1 Chapter 5_2 Strategies in Action 2 Porter’s Five Generic Strategies
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Ch 5 -2 Porter’s Five Generic Strategies According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus. 1. Cost Leadership Strategy Type 1: Low Cost Type 2: Best Value 2. Differentiation Strategy Type 3: Differentiation 3. Focus Strategy Type 4: Low Cost/Focus Type 5: Best Value/Focus Type 6: Differentiation/Focus
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Porter’s Generic Strategies Cost Leadership Differentiatio n Target Scope : Broad Narrow (Focus) Large Market (Industry- wide) Type 1 Type 2 Type 3 Small Market Type 4 Type5 Type 6 3
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Type 1 or 2 Cost Leadership Strategy Type 1 and 2 refer to a cost leadership strategy that emphasizes producing standardized products at a very low per-unit cost for consumers who are price-sensitive. Type 1: a low-cost strategy would offer products or services to a wide range of customers at the lowest price available on the market. Type 2 :a best-value strategy that would offer products
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This note was uploaded on 03/30/2012 for the course HRAD 4523 taught by Professor Leong during the Spring '08 term at Oklahoma State.

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ch05_2 - Chapter 5_2 Strategies in Action 2 Porters Five...

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