CIMA E2 Syllabus A. Business models and value creation - Porter's Generic Strategies - Notes 9 / 10
This deals with HOW to change the competitive edge and gives 3 possible options:
Cost leadership - This involves manufacturing goods more efficiently than rivals.
Differentiation - This involves charging a premium for a product due to its actual or perceived benefits.
An example would be a company who is a leading brand and is successful due to its high quality materials. Its products would be considered to be differentiated and marketed as ‘high end products’.
Focus - This involves focusing on a particular market segment. It allows businesses to charge a premium price for their products.
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Porter's Diamond
Syllabus A. Business models and value creation
A2. Competitive Advantage
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Syllabus A. Business models and value creation
A2. Competitive Advantage