When a firm pursues differentiation strategy, it attempts to become unique in the industry, by offering those products and services, which have value to the customers. Cost leadership strategy is a strategy to gain a competitive advantage by manipulating the cost of production. Starbucks Coffee’s Generic Strategy (Porter’s Model) Starbucks Coffee uses the broad differentiation generic strategy. Porter’s Differentiation Strategy Another way of achieving a competitive advantage for companies is through differentiation strategy (Porter, 1980). In this generic strategy… Based on Porter’s Generic Strategies, which were proposed by Michael Porter, IKEA mainly follows the “Cost Leadership Strategy”. The strategies were first set out in 1985 by Michael Porter in 1985 in his book, “Competitive Advantage, Creating And Sustaining Superior Performance”. Differentiation strategies have strengths and weaknesses.
Cost Leadership.
Differentiation Strategy Porter Generic Strategies คือ กลยุทธ์ระดับบริษัท แบ่งออกเป็น 4 กลยุทธ์ คือ Cost Leadership, Differentiation, Cost Focus, และ Differentiation Focus Cost Leadership. He then subdivided the Focus strategy into two parts: “Cost Focus” and “Differentiation …
Porter's generic strategies model does not suggest one strategy or focus is better than another. ... or a combined cost leadership and differentiation strategy. Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized service in a niche market). IKEA seeks for suppliers who could manufactures well-designed subassemblies at the lowest costs and customers need to assemble the products themselves. Introduction to Focus Strategy. This particular strategy focuses on market research data to understand the client and also to identify what the current competitors are … These are shown in figure 1 below. Differentiation strategy is one of three Porter’s Generic Strategy; others are cost leadership and focus. When I discuss this concept the principles I am discussing are based on Porter’s Generic Strategies. Based on Porter’s Generic Strategies, which were proposed by Michael Porter, IKEA mainly follows the “Cost Leadership Strategy”. The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. Buyers thus sacrifice some of the features, services, or image possessed by the differentiated firm for large cost savings; Introduction to Focus Strategy. A differentiation strategy allows companies to communicate the unique features of their products and create a niche for the product.