The Strategy Book

Porter’s generic strategies

Porter also argued there are only three general strategies for achieving higher than average performance: you can be the cost leader through efficiency, you can develop unique products or services that are differentiated, or you can focus on niche markets.

How to use?

You can use the model to figure out how your current strategy fits within the extremes of cost leadership, differentiation and focus. Who is the cost leader in your market? Who has the most unique product or service? What narrow segments are being looked after by you and your competitors?

According to Porter, you have to choose between one of the ...