INI
Porter's Generic Strategies - INI
Porter's Generic Strategies are three fundamental strategies for building competitive advantage, proposed by Harvard Business School professor Michael Porter in his 1980 book 'Competitive Strategy'. The three strategies are Cost Leadership, Differentiation, and Focus. Companies choose their strategy based on two axes: the source of competitive advantage (low cost or differentiation) and the scope of competition (broad market or narrow market). For over 40 years, this framework has been used worldwide as a classic strategic management tool.
business strategy
Michael Porter
competitive strategy
competitive advantage
framework
[item.cost-leadership]
code=1
slug=cost-leadership
name=Cost Leadership Strategy
description=A strategy to provide products and services at lower costs than competitors across the entire industry.
competitiveAdvantage=Low cost
competitiveScope=Broad market (entire industry)
examples=["Uniqlo","Daiso","IKEA","Amazon"]
[item.differentiation]
code=2
slug=differentiation
name=Differentiation Strategy
description=A strategy that adds unique value that competitors don't have, differentiating through brand, quality, and service.
competitiveAdvantage=Differentiation
competitiveScope=Broad market (entire industry)
examples=["Apple","Starbucks","Muji","Mos Burger"]
[item.focus]
code=3
slug=focus
name=Focus Strategy
description=A strategy that concentrates resources on specific customer segments or regions to build advantage in niche markets.
competitiveAdvantage=Low cost or differentiation
competitiveScope=Narrow market (specific segment)
examples=["Harley-Davidson","Crystal Geyser","Leica","Suzuki"]