A Project on Porter's Generic Strategies

1. Strategic Management Porter's Generic Strategies

18. Rivals cannot meet differentiation-focused customer needs. Brand loyalty to keep customers from rivals. Better able to compete on price. Rivalry Specialized products & core competency protect against substitutes. Customer's become attached to differentiating attributes, reducing threat of substitutes. Can use low price to defend against substitutes. Threat of Substitute Suppliers have power because of low volumes Better able to pass on through suppliers, price increases to customers. Better insulated from powerful suppliers. Supplier Power Large buyers have less power to negotiate because of few alternatives. Large buyers have less power to negotiate because of few close alternatives. Ability to offer lower price to powerful buyers. Buyer Power Focusing develops core competencies that can act as an entry barrier. Customer loyalty can discourage potential entrants Ability to cut price in retaliation deters potential entrants. Entry Barriers Focus Differentiation Cost Leadership Industry Force

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