Manag., November-2017 – Q40
0. Which among the following is not a generic strategy?
- Option : A
- Explanation : Michael Porter identifies three types of generic strategies that can be pursued by almost any business. These strategies help the business achieve, build, defend, and sustain its competitive advantage. A business builds competitive advantage by different means through cost leadership, superior product and technology, quality, and reliability of service. Small businesses must build competitive advantages to compete effectively in the marketplace. The common areas of distinctive competence include experience and knowledge, uniqueness of product or service, better than average service, location, low cost and price, quality of the product, variety of products, friendly atmosphere, reputation, and unique method of marketing. As indicated by given Fig. Michael Porter’s generic strategies consist of cost leadership, differentiation, and focus strategies.
