2.3.1.1 Porter’s competitive advantage model
Porter‘s generic business level strategies; overall cost leadership,
differentiation, and focus have become a dominant paradigm in the business
literature (O‘Regan & Ghobadian, 2005). According to Porter (1985), each of
these represents a fundamentally different approach to devise and
sustaining a competitive advantage. Usually, a firm must make a choice
between them or it will become stuck in the middle. The stuck in the middle
situation is a certain way of achieving disappointing results which may later
lead to liquidation unless a firm in that place switches to one of the three
places. Porter‘s generic strategies are the following: cost leadership,
differentiation, focus or niche strategy.
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