Competitive forces

Date: 2015-10-07; view: 550.

M. Porter says that competitive advantage can be based on: cost leadership – offering products or services at the lowest cost; this is one strategy to adopt in volume industries where competitors produce large numbers of similar products; differentiation – offering products or services that give added value in terms of quality or service compared to competitors; focus on a narrow market segment. The danger, says Porter, is when a company does not follow any of these particular strategies and is stuck in the middle.