Differentiation and cost leadership are the two main generic strategies from "summary" of Competitive Strategy by Michael E. Porter
In the realm of competitive strategy, two primary generic strategies reign supreme: differentiation and cost leadership. These strategies serve as the foundation for companies seeking to gain a competitive advantage in the market. Differentiation involves creating a unique and desirable product or service that sets a company apart from its competitors. By offering something distinctive, companies can command higher prices and build customer loyalty. This strategy often involves innovation, branding, and superior customer service to create a perceived value that customers are willing to pay for. On the other hand, cost leadership focuses on becoming the low-cost producer in the industry. By minimizing costs through efficient operations, economies of scale, and tight cost control, companies can offer products or services at lower prices than their competitors. This strategy allows companies to attrac...
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