Porter's Generic Strategies with examples
Added on - Sep 2019
Strategic management provides a wide range of concepts like SWOT, BCG Matrix, Competitor analysis, Core competencies, Mergers and Acquisitions, Generic Strategies, CSR, alliances, business ethics, etc. In the following section, Porter’s Generic Strategies will be discussed in detail. Cost leadership strategy, Focus strategy, and differentiation strategy are discussed. Efficient management of the brand will lead to apparent differentiation even if the product is similar to the product of the competitors like Starbucks have branded coffee and Nike have branded sneakers. You can also check "Strategic Analysis of Starbucks" and "Strategic Management of Nike" for depth analysis.
The concept of generic strategies was given by Michael Porter in 1980. Since then the concept has evolved over time and various authors have taken into account the strategies given by Porter. Strategic management helps in the evaluation of competitors and setting goals and formulating strategies for competing. The concept of generic strategies is as relevant still today as it was back then when the concept has been developed. Generic Strategies allow the organizations to gain a competitive advantage over the competitors in the market and thus ensures effectiveness and efficiency in the business operations of the organization in the long run.