Five Generic Competitive Strategies

Handbags Industry

3. Cost Focus – could be advertising handbags where a firm offers to mass-produce handbags for other firms with their logo on them. It is a small part of the handbag market but the manufacturer must keep the price low. Otherwise, the customer will select another manufacturer.

4. Focus Differentiation – could be an exclusive golf bag with an exclusive brand such as Titleist. The manufacturer focus on a particular segment of the submarket golf bags and customers do not look at the price but at other factors such as quality and image

Conclusion

Overall, Porter’s five generic strategies is about how a firm can achieve a competitive position in the industry.