According to Michael Porter, organizations cannot simultaneously pursue both a low-cost business level strategy and a differentiation...

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Finance

According to Michael Porter, organizations cannot simultaneouslypursue both a low-cost business level strategy and adifferentiation business level strategy. Illustrate why.

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Buisness level Strategy An organizations core competencies should be focused on satisfying customer needs or preferences in order to achieve above average returns This is done through Businesslevel strategies Business level strategies detail actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific individual product or service markets Businesslevel strategy is concerned with a firms position in an industry relative to competitors and to the five forces of competition According to Michael Porter a firms strengths ultimately fall into one of two catagory cost advantage Differentiation By applying these strengths in either broad or narrow scope three generic strategy results 1LOW COST 2DIFFERENTIATION 3 FOCUS Here we will discuss about only two 1Low cost level strategyCost leadership strategy Organizations See Answer

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