Session 3/4 theme 3 - Porter and Kay Flashcards
What is the aim of Porters generic strategies
To gain competitive advantage
What label refers to a mass market
Leadership
What label refers to a niche market
Focus
What is cost leadership
Making products at lowest cost
What are examples of cost leadership
Outsourcing, lean management, low cost products, offering lower prices to consumers
What is differentiation leadership
The product or service is unique and offers a USP to add value
What is cost focus
Focusing on cost minimisation
What are some examples of cost focus
Manufacturing and lean production
What is differentiation focus
Approach to competitive advantage where a company attempts to outperform rivals by offering a perceived better product
What is a strategy
Long term
What is a tactic
Short term
What are examples of a strategy
Cost leadership, cost focus, differentiation leadership, differentiation focus
What are examples of a tactic
Sales, quality assurance, marketing, mergers and acquisitions, operations, innovation
What are the advantages of porters generic strategy
Focuses on few key areas, allows targeting, competitive advantage
What are disadvantages of porters generic strategies
Lacks flexibility, rapidly changing market places, some companies are successful in the middle of strategies
