Porter's Generic Strategies [HL only]
This commonly used tool helps managers to explore how a business can gain competitive advantages to help determine its strategic direction. These generic strategies comprise of: (i) cost leadership (producing at a lower cost of competitors), (ii) differentiation (providing products with a distinctive or unique selling point), and (iii) focus (selling specialized product aimed at specific market segments). Focus strategies are further categorized as (i) cost focus and (ii) differentiation focus.
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