Porter’s Generic Strategies

1. Porter’s Generic Strategies consists of 2 different strategies which seek to give them
a competitive advantage. These strategies include lower cost and differentiation.
2. Lower costs is when a business seeks to become the business with the lowest costs
in its industry. This differs to Differentiation which is when a business tries to make
their product unique in some way. Lower costs allow a business to become more
profitable whereas differentiation allows a business to market itself as a leader or
innovator in an industry
3. The five industry forces include Competitive rivalry, Threat of a new entry, Supplier
power, Buyer power and Threat of substitution
4. Lower Cost – Kmart, Aldi, Costco, Samsung. Differentiation – Apple, Daily Edit, High
End Cars, Designer Brands.
5. Porter’s Generic Strategies consists of 2 different strategies which aim to give a
business a competitive advantage over other businesses in its industry. These
strategies include lower cost in which a business aims to be the lowest cost in its
industry and differentiation in which a business aims to make their product unique.
Porter’s Generic Strategies lets a business get an advantage over their competitors
and attract more customers towards them and away from competitors. However,
customers may see their products as lower quality and the lower cost/ unique
product may repel customers. Overall, I think that Porter’s Generic Strategies is a
good strategy for businesses to implement. I believe that Michelle’s should use the
Differentiation Strategy for the chocolate manufacturing business. Firstly, this would
allow the business to market itself as a leader or innovator in the industry if the
change is successful, being on top of the two big businesses. Secondly, if following in
the paths of the big business is not working for them, providing a unique alternative
may attract new customers towards them, making them a bigger business. Thirdly,