Does it apply to all the aspects of busniess? for every business Porter's Generic Strategies are same? or they varry business to business?????

Porter's generic strategy says that there are three broad ways of putting your business.

1. Overall cost leadership
2. Differentiation
3. Focus

1.Cost Leadership is a strategy where the company tries to capture leadership by producing LEAST cost products in the existing Market. This hels it to kick out competition and INCREASE ITS MARKET SHARE.

Cost leadership requires great at engineering, purchasing, manufacturing & physical distribution so as to maintain least cost.

2. Differentiation as the name says is a strategy where differentiate . Note differentiation can be any thing .. can be product differentiation , can be differentiation in terms of services etc.

Companies differentiating should be good at PRODUCT QUALITY to a great extent. ONLY "SONY" can say "IT's a SONY"

So the firm seeking quality leadership must make products with best components, put them together expertly etc.

3. Focus - business focuses on 1 or more narrow market segments, gets to know these segments intimately & pursues either cost leadership or differentiation within the target segment (niche marketing).

cheers.

What about Service industry? Does the case change there?

can you share some examples..<br><br>Post edited by: arvind, at: 2008/07/08 00:48

Examples of cost leadership:

The Chinese Dragon (due to the MTBF principle)
1. Nirma
2. Parle
3. Cambridge shirts
4. Tips &amp; Toes (cosmetics)

Examples of Differentiation

“It’s a Sony”
Meswak
Pepsodent Germicheck
Rahejas

Examples:
Cost focus:
1. Sterling Holiday Resorts
2. Vada Pav
3. Anjali kitchenware
4. Differentiation focus:
5. Jumbo King vada pav
6. Club Mahindra