Description
This eBook takes you deep into Michael Porter’s time-tested strategies—cost leadership, differentiation, focus strategies, and even hybrid approaches that combine the best of both worlds.
Discover the strategic choices that drive success and learn how deliberate trade-offs can make or break a company. Through engaging Q&A sections, complex concepts become crystal clear. You’ll see why brands like Temu, BYD, and Primark dominate with cost leadership, while innovators like Apple, Sony PlayStation, and Rolex thrive through differentiation. Learn how niche markets fuel customer loyalty—and why a lack of focus can leave companies struggling to stay competitive.
With real-world examples and clear insights, this eBook turns theory into action. You’ll gain the knowledge to make smarter business decisions and steer your organization toward a lasting competitive edge.
Packed with 22 real-life case studies and deep analysis, this isn’t just a guide—it’s a roadmap to strategic success. Learn how to maximize your strengths, minimize risks, and harness market dynamics to fuel growth and long-term industry dominance.
Get your copy now and take your strategy to the next level!
CONTENTS
QUESTIONS AND ANSWERS …………………………………………. i-iv
I BUSINESS STRATEGY AND TRADE-OFFS …..……..……………………. 1
A. The Importance of Business Strategy ……………………………….. 1
B. About Michael Porter ……………………………………………………. 2
C. Michael Porter’s Generic Strategies ……….………………………… 4
D. Stuck in the Middle ……………………………………………………….. 7
E. Porter’s Five Forces as the Basis for Generic Strategies ……….. 9
F. Dilemma, Trade-off, and Opportunity Cost …………………………. 12
II COMPREHENDING PORTER’S GENERIC STRATEGIES ………………. 14
A. Cost Leadership Strategy ………………………………………………. 14
1. Characteristics of Cost Leadership Strategy ……………………. 14
2. Th1 Steps to Implement Cost Leadership Strategy …………….. 15
B. Differentiation Strategy …………………………………………………. 16
1. Characteristics of Differentiation Strategy ……..………………. 17
2. The Steps to Implement Differentiation Strategy ………………. 17
C. Focus Strategy and Its Two Variants ………………………………… 19
1. Cost Focus ……………………………………………………………… 19
2. Differentiation Focus …………………………………………………. 19
D. The Differences Among Three Generic Strategies ………………… 22
III TRADE-OFFS IN THE CONTEXT OF GENERIC STRATEGIES ………… 26
A. Trade-offs in Porter’s Generic Strategies …………………………… 26
B. Trade-offs for Sustainable Competitive Advantage ………………. 27
C. Avoiding Pitfalls in Porter’s Generic Strategies …………………… 29
1. Cost Leadership Failure (Case: Yugo Hatchback) …………….. 30
2. Differentiation Strategy Failures (Case: Crystal Pepsi) ………. 32
3. Focus Strategy Failures (Case: Segway PT) ……………………. 35
IV OVERALL COST LEADERSHIP STRATEGY AND ITS TRADE-OFFS …. 37
A. Advantage of Overall Cost Leadership Strategy …………………… 37
B. Key Trade-offs Involved in Pursuing Cost Leadership Strategy .. 38
C. Cases of Cost Leadership Strategy and Their Trade-offs ……..… 39
Case 1: Temu – Cheap and Affordable E-Commerce …………….. 39
Case 2: BYD – Cost Leadership in the Electric Vehicles …………. 42
Case 3: Barry Callebaut – Cost Leadership and Quality …………. 48
Case 4: TCL – Cost Leadership in Electronic Products ………….. 51
Case 5: Primark – A Low-Cost Fashion Store Chains ………..…… 54
D. Lesson Learned …………………………………………………………… 57
V DIFFERENTIATION STRATEGY AND ITS TRADE-OFFS ……………….. 58
A. Advantage of Differentiation Strategy ……………………………….. 59
B. Key Trade-offs Involved in Pursuing Differentiation Strategy …… 59
C. Cases of Differentiation Strategy and Their Trade-offs ………….. 61
Case 1: Sony PlayStation – Differentiation in Gaming …………….. 61
Case 2: Apple – The Justification of Premium Pricing ……………. 64
Case 3: Brompton – The Excellences of Folding Bikes ………..…. 67
Case 4: LEGO – Differentiation in Unique Brick Toys .….………… 70
Case 5: Sinar Sosro – Differentiation to Diversification …..……… 73
D. Lesson Learned …………………………………………………………… 77
VI FOCUS STRATEGY AND ITS TRADE-OFFS ………..……………………. 78
A. Advantages of Focus Strategy ………………………………….…….. 79
B. Key Trade-offs Involved in Pursuing A Focus Strategy ……….….. 80
C. Cases of Focus Strategy and Their Trade-offs …………………….. 81
Cost Focus Strategy ……………………………………………………… 81
Case 1: Claire’s – A Low-Cost Accessories for Girls ………………. 81
Case 2: Monster Energy – Affordable Energy Drink ………..…..… 84
Case 3: Itel – Cheap Smartphones for Emerging Market ………… 87
Differentiation Focus Strategy ……………..…………………………. 90
Case 1: Rolex – Watches for the Affluent People …………..……… 90
Case 2: Lululemon – The Exclusivity of Active Wear ..……….……. 93
Case 3: Harley Davidson – Road to Differentiation Focus ……….. 96
D. Lesson Learned …………………………………………………………… 101
VII HYBRID STRATEGIES AND THEIR TRADE-OFFS ………………………. 102
A. The Advantages of Hybrid Strategies ……………………………….. 104
B. Trade-offs in Hybrid Strategies ……………………………………….. 105
C. Cases of Hybrid Strategies and Their Trade-offs ………………….. 106
Case 1: IKEA – Cost Leadership and Differentiation ………………. 106
Case 2: Samsung – Cost Focus and Differentiation Focus ………. 110
Case 3: Indomie – Differentiation and Cost Leadership ………….. 114
D. Lesson Learned …………………………………………………………… 118
VIII GLOBAL VALUE CHAINS IN GENERIC STRATEGIES …………………. 119
A. Global Value Chains ……………………………………………………… 119
B. The Benefits and Risks of Global Value Chains …………………….. 123
C. Global Value Chains and Porter’s Generic Strategies …………….. 125
D. Trade-offs in Global Value Chains …………………………….…..…… 128
E. Recent Trends in Global Value Chains ……………………………….. 129
IX CONCLUSION ………………………………………………………………….. 130
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File format: PDF
Paper Size: A4
File size: 2.8 MB
Number of pages: 130
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