This PowerPoint presentation was created solely for educational purposes. The images and content in this presentation belonged to the rightful owner.

1. TOPIC
Competitive
Strategies
Strategic Management

2. He outline the three main
strategic options open to
organization that wish to
achieve a sustainable
competitive advantage.
Michael Porter (1980’s)
Generic Competitive Strategies

3. DIFFERENTIATION
STRATEGY
FOCUS
COST
LEADERSHIP
BROAD
NARROW

4. GENERIC COMPETITIVE STRATEGIES
Cost
Leadership
• Lowest cost is the main focus of
this strategy.
• Deliver goods (or services) at the
lowest costs.

5. GENERIC COMPETITIVE STRATEGIES
Four key cost
drivers:
• Input costs
• Economies of scale
• Experience
• Product or process design

6. GENERIC COMPETITIVE STRATEGIES
Two main ways of
achieving this:
• Increasing profits by reducing costs, while
charging industry – average prices.
• Increasing market share by
charging lower prices.

7. GENERIC COMPETITIVE STRATEGIES
Risks in adapting
this:
• Not unique to one company or
institution.
• Other institutions can copy your
reduction strategies.

8. GENERIC COMPETITIVE STRATEGIES
Differentiation
Strategy
• The essence of this is to offer unique
product or service attributes that a wide
range of buyers find.

9. GENERIC COMPETITIVE STRATEGIES
Differentiation
Strategy
• Students nationwide acknowledge the
superiority of the differentiated education,
which is based on extensive research,
educational planning, high quality teaching
and intensive student support.

10. GENERIC COMPETITIVE STRATEGIES
Enhancing
Differentiation
• Seeking out high-quality inputs
• Striving for innovation
• Pursuing continuous quality
improvement
• Improving customer service

11. GENERIC COMPETITIVE STRATEGIES
This strategy fail for
several reasons:
• Attributes that are easy and quickly copied
• Buyers see little value in the unique attributes
• Overspending on efforts to differentiate

12. GENERIC COMPETITIVE STRATEGIES
REMEMBER:
A low cost strategy can always defeat a
differentiation strategy when buyers are
satisfied with a basic product.