What Are the Different Competitive Strategies According to Porter's Model

Question

Examlex · Accepted Answer

The Answer is An organization responds to the structure of its industry by choosing a competitive strategy.Porter followed his five forces model with the model of four competitive strategies.According to Porter,a firm can engage in one of four fundamental competitive strategies.An organization can be the cost leader and provide products at the lowest prices in the industry,or it can focus on adding value to its products to differentiate them from those of the competition.Further,the organization can employ the cost or differentiation strategy across an industry,or it can focus its strategy on a particular industry segment.According to Porter,to be effective,the organization's goals,objectives,culture,and activities must be consistent with the organization's strategy.

What Are the Different Competitive Strategies According to Porter's Model

Definitions: