1
LITERATURE REVIEW
Porter’s Competitive Strategies
Takazia Snell
School of Business, Liberty University
Author Note
Takazia Snell
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Takazia Snell
Email: tmsnell@liberty.edu
Abstract
In this literature review paper, Porter’s competitive strategies in organizations are examined based on past and current research. The main aim of the paper is to evaluate different competitive strategies i.e. differentiation strategy, low-cost/cost leadership strategy, focus/market segmentation strategy, their effect on organizations’ performance, and their application in organizations to enhance competitive advantage. Basically, strategy in any organization is about deciding where the organization wants to go and how to get there. Competitive advantage is achieved by creating more value for consumers that exceed an organization’s cost of creating it. The past literature and research work on Porter’s competitive advantage and competitive strategies are evaluated to determine how the strategies are applied in organizations and their effect on the overall performance of the organizations. According to past research, consumers are willing to pay for value, and superior value is derived from offering lower prices compared to rival organizations for equivalent benefits or offering quality and unique benefits that more than offset a premium price. Application of Porter’s competitive strategies entails the initiation of offensive or defensive steps aimed at creating a defendable position in a competitive industry. Firms apply Porter’s competitive strategies to cope with the competitive forces in the sector and outdo other firms in the industry. Generally, most organizations pursue only one of Porter’s generic strategies to achieve a competitive advantage. However, in the current business environment, some organizations are pursuing more than one strategy to come up with differentiated products or services at a low cost.
Keywords: Porter’s competitive strategies, organizations, value
The post 1 LITERATURE REVIEW Porter’s Competitive Strategies Takazia Snell School of Business, Liberty appeared first on PapersSpot.