Porters generic strategies

Question 1

Porter’s Generic Strategies:

Answer 1

every strategy varies on two dimensions: competitive advantage & competitive scope
- Low Cost (Competitive Advantage)
- Uniqueness (Competitive Advantage)
- Broad Target (Competitive Scope)
- Narrow Target (Competitive Scope)

Question 2

Low Cost (Competitive Advantage)

Answer 2

resources allow for production cheaper than others

Question 3

Uniqueness (Competitive Advantage)

Answer 3

resources allow for production of unique features

Question 4

Broad Target (Competitive Scope)

Answer 4

capacity to produce at large volumes; large reach

Question 5

Narrow Target (Competitive Scope)

Answer 5

targets under-served niche; *is market big enough?

Question 6

The 4 forces

Answer 6

1. Cost Leadership
2. Cost Focus
3. Differentiation
4. Differentiation Focus

Question 7

Cost leadership

Answer 7

low costs that other competitors have difficulty competing with (Walmart)

Question 8

Cost focus

Answer 8

simple products, low costs that a small, but enough size of consumers. (freedom mobile)

Question 9

Differentiation

Answer 9

unique features that are broadly appealing (Apple)

Question 10

Differentiation focus

Answer 10

customers are willing a lot more (ferrari)