Presented By: GROUP 03

PORTER’S GENERIC STRATEGY

Scope of Competitive Advantage
AUTOMOBILE INDUSTRY
COST DIFFERENTIATION
COST LEADERSHIP: This generic strategy creates
competitive advantage based on the attractiveness
of low costs and corresponding low prices of
products.

BROAD
DIFFERENTIATION LEADERSHIP: This focuses on GM’s cost leadership strategy
Toyota’s differentiation
organisations targeting larger markets and making is their price, which is relatively
lower than other automobile
strategy is its innovation
their products different or more attractive than any which leads to unique and
attracting customers and giving
other within the industry to achieve a competitive competitive advantage. attractive products for all

Scope
advantage. market segments.

COST FOCUS: Cost-focus refers to organisations

NARROW
who seek to develop a lower-cost advantage, but
only within a small market segment.

DIFFERENTIATION FOCUS: Organisations look to In using a focused cost Followed a focused

leadership, BMW targets
develop product differentiation, but only within one
specific markets at lower
or a smaller number of market segments.
prices than their competitors
while still making profits.
differentiation strategy by
targeting its autopilot
engineered electric cars to a
niche market at high prices.