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Porter’s Generic Strategies In A Nutshell
In his book, “Competitive Advantage,” in 1985, Porter conceptualized the concept of competitive advantage, by looking at two key aspects. Industry attractiveness, and the company’s strategic positioning. The latter, according to Porter, can be achieved either via cost leadership, differentiation, or focus.
On the other side, based on a different context a company could still reach a competitive advantage in a broad market through differentiation.
A third generic strategy, that targeted a narrow scope within an industry could also be reached through cost focus or differentiation focus.
There is one scenario, that Porter emphasized to avoid: stuck in the middle.
Getting stuck in the middle
In all the cases in which a company wouldn’t be able to execute one of the generic strategies highlighted by Porter in competitive advantage, this would result in a stuck in the middle scenario, where no competitive advantage is created.
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