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Risks of the Generic Strategies http://www.drawpack.com your visual business knowledge business diagrams, management models, business graphics, powerpoint templates, business slides, free downloads, business presentations, management glossary Risks of Cost Leadership Risks of Cost Differentiation Risks of Cost Focus Cost leadership is not sustained  competitors imitate  technology changes  other bases for costs leadership erode Proximity in differentiation is lost Cost focuses achieve even lower cost in segments Differentiation is not sustained  competitors imitate  bases for differentiation become less important to buyers Cost proximity is lost Differentiation focuses achieve even greater differentiation in segments The focus strategy is imitated The target segment becomes structurally unattractive  structure erodes  demand disappears Broadly targeted competitors overwhelm the segment  the segment‘s differences from other segments narrow  the advantages of a broad line increase New focuses subsegment the industry
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Risk of generic strategies diagram

  • 1. Risks of the Generic Strategies http://www.drawpack.com your visual business knowledge business diagrams, management models, business graphics, powerpoint templates, business slides, free downloads, business presentations, management glossary Risks of Cost Leadership Risks of Cost Differentiation Risks of Cost Focus Cost leadership is not sustained  competitors imitate  technology changes  other bases for costs leadership erode Proximity in differentiation is lost Cost focuses achieve even lower cost in segments Differentiation is not sustained  competitors imitate  bases for differentiation become less important to buyers Cost proximity is lost Differentiation focuses achieve even greater differentiation in segments The focus strategy is imitated The target segment becomes structurally unattractive  structure erodes  demand disappears Broadly targeted competitors overwhelm the segment  the segment‘s differences from other segments narrow  the advantages of a broad line increase New focuses subsegment the industry
  • 2. Drawpacks Business Diagrams Drawpack.com offers these premium Business Diagrams for students and professionals around the globe for their personal use for free. Please enjoy these Business Diagrams. You can send these slides to your personal contacts who might be interested in Business Diagrams. For further information about our service please contact us: [email_address] Please find our membership offer on http:// www.drawpack.com

Editor's Notes

  1. Source: Competitive Advantage: Creating and Sustaining Superior Performance, Porter, 1985