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Porter’s generic strategies and Value Chain

Updated: Jul 14



Porter’s generic strategy is a three-dimensional strategy composed of three quadrants or sometimes four depending on how the matrix is drawn the name are differentiation, cost leadership and focus. or the lower quadrant can have cost focus and differentiation focus

Strategic Advantage: uniqueness perceived by customers and low-cost position

Strategic Target: Industry-wide and particular segment only

Porter’s generic strategies focus on the competitive advantage of a company. It can be used on businesses of all sizes and companies can have a choice of one or two types which can be applied to their competitive advantage strategy.

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