Porter’s three generic strategies could be used as a method which businesses could use to define their goals. Its general definitions allow for his strategies to “be applied to any business, product, or service”. These three generic strategies are:
- broad cost leadership
- broad differentiation
- focused strateg
(Baltzan, 33, 2022)
Broad cost leadership companies attempt to sell decent quality goods, to a large range of customers, at the lowest price. Companies who approach their business with the broad differentiation strategy, focus on selling a good that is unique when compared to similar items. Lastly, the focused strategy is what businesses use to identify how to provide more quality to a product in a niche market.
Swatch – Watches and jewelry that appeal to a large range of customers while still providing quality and style.
Van Cleef and Arpels – Watches and jewelry known for their quality and detail in their craftmanship is the reason why they fetch big money.
Timex – Focused on the manufacturing and selling of watches, they have created three dimensions of watches which cover the mass-market, sport and technology, and boutique divisions. Their focus on the construction of watches has also allowed them to provide decent quality for a very affordable price.
Rolex – With a history of quality, style, and innovation for their watches, it has become the reason why they are considered to have a high value and therefore, a hefty price tag.
Baltzan, Paige. Business Driven Technology 9e - Connect. New York: McGraw-Hill 2022.
