The document discusses Porter's generic strategies, highlighting cost leadership and differentiation as key competitive approaches. Cost leadership focuses on offering no-frills, low-cost products to a price-sensitive market, while differentiation targets specific needs with high-quality, unique offerings. It emphasizes the importance of market segmentation and the need to choose a strategic focus rather than attempting to blend multiple strategies.

1. Porters Generic
Strategy
By
Rudresh Kumar

2. COST LEADERSHIP
 No Frills, cost conscious and price sensitive
 Confident to achieve and maintain No. 1
position
 Fixed costs spread over large number of units
 Continuous improvement

3. DIFFERENTIATION
 Unique and desirable
 Specific needs, not price sensitive
 Ability to deliver high quality products/services
 Effective sales marketing – stay agile

4. FOCUS MARKET
SEGMENTATION
 Specialized ‘niche’ market
 Distinct groups with specialized needs
 Strong brand loyalty
 Gain competitive advantage through
innovation

5. CONCLUSION
 Cost Leadership and Differentiation have a
broad scope
 Focus has a Narrow Scope
 Choose the right one, do not ‘hedge your bets