Porter’s Generic Competitive Strategies

Model’s Competitive Variables

—         Competitive advantage: How to compete in a market

—         Competitive scope: How broad of a market to target

Cost Leadership Strategy

Having the lowest overall cost in a market to provide a competitive advantage in pricing over competitors

Differentiation Strategy

Providing unique and superior value for the customer that builds brand loyalty

Porter’s Generic Competitive Strategies

Cost Focus Strategy

Attempting to gain a competitive edge in a narrow (or regional) market segment by controlling (competitively dominating) the segment

Focused Differentiation

Achieving a competitive edge by delivering a superior product and/or service to a limited audience.