Briefly differentiate Michael Porter’s three generic strategies.
The answer should include the following info in your own words
Answer:
Michael Porter developed three generic strategies to illustrate the kinds of strategic managers might develop to make their organizations more competitive. The strategies are Differentiation, Cost Leadership, and Focus.
Differentiation focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors. This strategy focuses on uniqueness in such areas as product quality, design, and level of after-sales service.
Cost Leadership focuses on making an organization more competitive by producing products more cheaply than competitors. By producing cheaper, the firm is able to offer products to customers at lower prices than competitors can and therefore increase its market share.
The Focus strategy emphasizes making an organization more competitive by targeting a particular customer. Magazine publishers typically use this strategy as they focus their magazine on a specific target customer.