Porter's Generic Strategies

Porter's generic strategies of low-cost and differentiation are introduced and explained in this essential video for business students.
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VIDEO CHAPTERS
0:00 Introduction
0:16 The Challenge Facing Marketing Strategy
0:34 Porter's Approach
1:04 What is a Competitive Advantage?
1:47 Porter's Generic Strategies
2:47 Why Low Cost is a Source of Competitive Advantage
3:52 Likely Features of a Low Cost Operators
4:50 Examples of Low Cost Strategies in Action
5:48 Ways to Achieve Differentiation
6:47 Examples of Successful Differentiation Strategies?
8:27 Examples of Stuck in the Middle?
9:17 Hybrid Strategies: Differentiation AND Low Cost
VIDEO SUMMARY
This video is about Porter's Generic Strategies, which helps businesses gain a competitive advantage.
Michael Porter identified two main strategic approaches for businesses to achieve a competitive advantage: differentiation and low cost.
Differentiation: aiming to be unique in the market by focusing on superior quality, branding, wider range of features, or customer service. Customers are willing to pay more for these differentiated products or services.
Low Cost: aiming to be the most cost-efficient producer in the market. This can be achieved through economies of scale, automation, or a lean production method. Businesses with a low-cost strategy can enjoy higher profits or grow market share by offering lower prices.
Businesses that are stuck in the middle, not being the most differentiated or the most cost-efficient, are likely to suffer from competitive disadvantage. Examples of businesses that might be stuck in the middle include McDonald's, Sony, Smiths and Morrisons.
Porter also proposed a hybrid strategy, which combines low cost with differentiation. Ikea is a great example of a company that employs this strategy. Ikea offers low-priced furniture with good quality and unique design, and it also tailors its products to different international markets.

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[@Carl811]

Big up Jim, cheers for the past couple years of teaching

[@tutor2u-official]

😀Ahhhh. You're too kind. Really pleased you found this and other videos helpful in your studies! (Jim)

[@carmenludvigsen8798]

THANK YOU SO MUCH, written a case on Dyson, so this really helped! how nice of you!

[@aewcontrol2984]

Great presentation, thanks, I’m on my last course in strategy management before my MBA capstone project!!

[@zzirGrizz00l]

Extremely useful! Thankyou very much!

[@khaledalkayed]

Thanks for sharing

[@sophiezhang9653]

Very useful stuff. The topic was illustrated clearly.

[@fatmatasaccoh9]

Very helpful as am preparing for exams

[@bharatchimanpure1]

very useful content

[@anlynce]

Thank you so much :) will be reporting it on class later.

[@ceciliaeleuterymbangile7989]

Are you studying this too

[@jzk2020]

Porter for the win. Love his lessons on shared value.

[@tejashirani2152]

No bloody way Jim. This came up as a 25 marker today!!!

[@karenrrandy]

Really helpful thanks

[@halfdinner8044]

thats nice thank u.. & sir how Posters 5 method is responsible for value cost equation of a firm ?

[@jdamicoofficial]

Great video mate

[@BlastmanDictionary]

New subscriber! Will listen to your theories again and again from today onwards... thank you sir.

[@tutor2u-official]

Thanks and welcome

[@asaventurasdonoaheaurora]

Good job!

[@thegreatthought8117]

Very helpfull but sir you should separately discussed differentiation focus.

[@philipdangaiso6877]

Nice

[@mwapekalunga6727]

Awesome explanation

[@tutor2u-official]

Thanks Mwape! Appreciate it [Jim]

[@primrosencube9010]

Very helpful

[@tutor2u-official]

Glad it helped

[@davecirlclux]

You didn't explain the difference between "focus" and "leadership"

[@Franky566]

why is it that the random youtube videos are always better than actual college courses?

[@tutor2u-official]

Thanks for finding us!

[@intrepidgaz]

I don't agree with some of these examples at all. McDonalds are quite clearly the cheapest fast food burger chain, operating on an efficiency and volume model, and firmly low cost. Sony's strategies are uniquely differentiated in its various product lines - noise cancelling headphones are best in class, playstation is best in class offering widest game variety, smartphones highly focused on camera tech enthusiasts. Conversely, how are Premier Inn differentiated? It's neither budget (Travelodge) or luxury (Hilton). The offer of a good night sleep is not differentiating from other regular hotels who - ya know - offer good nights sleep. Appreciate the video though ✌️

[@samspocket1927]

who here from birko college :(((

[@Christahale]

terikasih

[@tutor2u-official]

THANKS!

[@asthadoga5478]

This guy is so boring

[@tutor2u-official]

Thanks!