6.1.12 (HL)—Porter's generic strategies

Porter’s strategies are cost leadership, differentiation and focus; each requires a coherent source of advantage.

Trying to pursue incompatible advantages can leave a firm stuck in the middle.

Identify target scope, advantage and activities that reinforce it.

A focused premium bicycle maker differentiates for one segment rather than matching mass-market cost.

A slogan is not a strategy without supporting activities.