"Michael Porter portrays strategic choice as picking one from three generic strategies. Discuss and evaluate Porter’s approach.”

"Michael Porter portrays strategic choice as picking one from three generic strategies.
Discuss and evaluate Porter’s approach”
Solution:
Michael Porter proposed three “generic” strategies that can be used for competing and
outperforming other companies in the same industry: low cost leadership, differentiation, and
focus strategies. These can be performed by any type or size of business organizations.
The low cost leadership strategy is the ability of a company to design, produce, and market a
product more cost efficiently than its rival firms. Cost-Leadership is a low-cost strategy that
aims to capture a broad mass market by providing the product/service more efficiently than its
competitors. This efficiency can be achieved by constructing efficient-scale facilities, constantly
trying to reduce costs from experience, tight control over overheads and costs, and by
minimizing costs in areas like sales force, advertising, research and development. By using this
strategy, the company will be able to charge a lower price for its product than its competitors and
still be able to earn profits. Some of the...