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Focused differentiation strategy
Focused differentiation strategy













  • How will you produce the lowest cost delivery vs your competitors?.
  • How will you reinvest the additional profits of the business?.
  • What impact will the drive down on costs have to your customers and employees?.
  • There are a number of factors to consider when you’re going for Cost Leadership: This ensures you’re more profitable and thus can add shareholder value or invest in other parts of the business strategy. The Cost Leadership Strategy is where a business focuses on reducing the cost to deliver the products or services to a customer. Read through each definition as it’s not always clear - for example, Cost Focus does not mean an emphasis on the cost advantages to the market. You’ll see right away that the strategies have shared qualities.

    focused differentiation strategy

    So, if you’re currently looking at your strategy then reminding yourself of the generic strategies can be very useful if you want to achieve market share growth. They’re all around gaining a competitive advantage. Porter identified 4 generic strategies that can be used to both classify company behaviour and drive company behaviour. Porter's Generic Strategies helps you classify these approaches into four categories. It’s healthy for markets to have alternative and competitive strategies as well as different approaches. Look at Aldi vs Waitrose in the UK, or Trader Joes vs Whole Foods in the US. What other strategy frameworks has Michael Porter developed?ĭifferent companies approach markets in different ways.Can charities and non-profits use Porter’s Generic Strategies?.Can different company departments use Porter’s Generic Strategies?.Are Porter’s Generic Strategies mutually exclusive?.

    focused differentiation strategy focused differentiation strategy

    What is the Differentiation Focus Strategy?.















    Focused differentiation strategy