PET GENERIČKIH KONKURENTSKIH STRATEGIJA

A company can have many advantages and disadvantages over competitors, there are two basic types of competitive advantages that a company can possess, and these are differentiation and low costs. The importance of any disadvantage or advantage of a firm is ultimately just a function of differentiation or cost leadership. This is a result of the company’s ability to cope with five competing forces better than its rivals. The two basic types of competitive advantage combined with the range of activities a firm can accomplish lead to three generic strategies for achieving above-average business in the industry: cost leadership, differentiation, and focus. The focus strategy has two variants: focusing on costs and focusing on differentiation. Each generic strategy involves a fundamentally different path toward achieving competitive advantage, combining the choice of the type of competitive advantage according to the strategic goal. Cost leadership and differentiation strategies seek to find a competitive advantage in a wide range of industry segments, while focusing strategies focus on competitive advantage within a narrow segment.