Porter argues that there are three generic competitive strategies: differentiati
ID: 338406 • Letter: P
Question
Porter argues that there are three generic competitive strategies: differentiation, cost leadership, and focus. However, others have argued that focus is just a special case of differentiation and cost leadership, thus there are only two competitive strategies. Also it has been argued that while firms can choose from alternate strategies, the critical task is to implement the chosen strategy efficiently. This argument suggests that there is one competitive strategy--efficiency.
The question: So, how many competitive strategies are there? Three, two, or one? Discuss the basis for your answer. Does your answer affect the strategic decisions that firms should make? Discuss.
Explanation / Answer
Porter argues that there are three generic competitive strategies: differentiation, cost leadership, and focus. However, others have argued that focus is just a special case of differentiation and cost leadership, thus there are only two competitive strategies. Also it has been argued that while firms can choose from alternate strategies, the critical task is to implement the chosen strategy efficiently. This argument suggests that there is one competitive strategy--efficiency.
The question: So, how many competitive strategies are there? Three, two, or one? Discuss the basis for your answer. Does your answer affect the strategic decisions that firms should make? Discuss.