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Strategic Management Porter's Generic Strategies
Porter's Generic Strategies   ,[object Object],[object Object],[object Object]
Cost Leadership Strategy   ,[object Object],[object Object]
[object Object],[object Object],[object Object]
Firms that succeed in cost leadership often have the following internal strengths:   ,[object Object],[object Object],[object Object],[object Object]
Risks Involved ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Differentiation Strategy   ,[object Object],[object Object]
Firms that succeed in a differentiation strategy often have the following internal strengths:   ,[object Object],[object Object],[object Object],[object Object]
Risks Involved ,[object Object],[object Object]
[object Object],[object Object],[object Object]
Focus Strategy   ,[object Object],[object Object],[object Object]
[object Object],[object Object]
Firms that succeed in a Focus Strategy   often have the following internal strengths:   ,[object Object]
Risks Involved ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Rivals cannot meet differentiation-focused customer needs.  Brand loyalty to keep customers from rivals.  Better able to compete on price.  Rivalry   Specialized products & core competency protect against substitutes.  Customer's become attached to differentiating attributes, reducing threat of substitutes.  Can use low price to defend against substitutes.  Threat of Substitute Suppliers have power because of low volumes Better able to pass on through suppliers, price increases to customers.  Better insulated from powerful suppliers.  Supplier Power   Large buyers have less power to negotiate because of few alternatives.  Large buyers have less power to negotiate because of few close alternatives.  Ability to offer lower price to powerful buyers.  Buyer Power   Focusing develops core competencies that can act as an entry barrier.   Customer loyalty can discourage potential entrants   Ability to cut price in retaliation deters potential entrants.   Entry Barriers   Focus   Differentiation   Cost Leadership Industry Force
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Porter's Generic Strategies Explained

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  • 18. Rivals cannot meet differentiation-focused customer needs. Brand loyalty to keep customers from rivals. Better able to compete on price. Rivalry Specialized products & core competency protect against substitutes. Customer's become attached to differentiating attributes, reducing threat of substitutes. Can use low price to defend against substitutes. Threat of Substitute Suppliers have power because of low volumes Better able to pass on through suppliers, price increases to customers. Better insulated from powerful suppliers. Supplier Power Large buyers have less power to negotiate because of few alternatives. Large buyers have less power to negotiate because of few close alternatives. Ability to offer lower price to powerful buyers. Buyer Power Focusing develops core competencies that can act as an entry barrier. Customer loyalty can discourage potential entrants Ability to cut price in retaliation deters potential entrants. Entry Barriers Focus Differentiation Cost Leadership Industry Force