Porter's strategy matrix
- Created by: Olivia Gallacher
- Created on: 14-05-18 16:38
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- Porters Strategy Matrix
- what is it?
- it is a way of finding sustainable competitive advantage over competitors
- competitive advantage is having something better than competitors
- it is a way of finding sustainable competitive advantage over competitors
- Porter suggested 2 strategies
- low cost strategy
- the aim is to become the lowest cost operator
- high levels of productivity and efficiency
- bargains prices with supplier
- would involve production on large scale, benefiting from economies of scale
- why would this be an advantage?
- if it costs them less to produce they can reduce prices
- they would be most likely to get more profits
- if it costs them less to produce they can reduce prices
- Aldi/poundland
- the aim is to become the lowest cost operator
- focus and differentiation
- offers a product that is distinctively different
- ways in which businesses achieve differentiation
- superior quality
- branding- brand loyalty
- wide distribution- becomes and essential item
- sustained promotion- dominates by advertising
- Costa/premier inn
- low cost strategy
- 'stuck in the middle'
- low cost and differentiation
- McDonalds/ morrisons
- what is it?
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