The Four Generic Strategies For A Competitive Advantage

805 Words Jun 15th, 2016 4 Pages
Professor Kryscynski (2012) clarifies the four generic strategies that are essential to create the competitive advantage. The speaker claims that “a competitive advantage is when a company achieves higher profits than the average competitor in the product market” (Kryscynski, 2012). After that, he compares two firms with the same profit. However, the focal firm can drop the costs keeping the revenues stable or vice versa so that it would accomplish the competitive advantage. Porter identified two dimensions to achieve the competitive advantage that are the source and the scope (Kryscynski, 2012). Precisely speaking, the company should develop a broad market or narrow and focused market in the framework of the first dimension or to be a differentiator or low cost leader in the framework of the second. As a result, the following four elements show the core generic strategies: overall cost, overall differentiation, cost focus, and differentiation focus. All in all, it is better to choose one of the dimensions in practice and stick to it.
Enhancement to Generic Strategies
According to Kryscynski (2013), cost leadership and differentiation are two common ways to specify the competitive advantage. Nevertheless, there are an approach suggested by Treacy and Weirsma, who categorize the mentioned concept according to process, product, and customer (Kryscynski, 2013). The companies characterized by process have the operational excellence as they raise the productivity and receive…
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