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Five Strategies – Michael Porter
Michael Porter has designed five primary strategies that can be used for better decision making, allocation of costs and profit making. In his book Competitive Advantage, Porter justifies his use of the term generic. This term signifies that these strategically designed options pointed out by him can be used for any commodity or service in industries both big and small. Hence there is a sort of universality to his idea.
The five points stated by Porter are divided in a unique manner, to begin with there are three main strategies which are as follows:
- Cost leadership–
This method has interesting implications, costs of production are heavily reduced and an average price is charged on commodities. Such a decision ensures that sales are boosted while profits are maintained.
Here to begin with a thorough research must be done so that the company can deliver high quality commodities. The marketing should be directed towards conveying all those benefits which this new product offers.
In this third type of strategy, mostly online Michael Porter’s Five Generic Strategies Assignment Help is required. Companies here study a particular market, identify the needs of their customers and then deliver commodities and services to them.
Focus strategies have undergone another two fold classification, the categories are:
- Cost Focus –
Reducing costs of commodities in attempt to attract customers.
- Differentiation focus –
Increasing innovation and quality of items to boost sales.
As Michael Porter’s Five Generic Strategies Assignment Help experts point out, since focus strategies build their roots deep into the heart of customers most competitors back away from their domain. This strategy can be understood as adding an extra effort to marketing.
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