Porter’s Generic Strategies are founded on the premise that a business can be most effective competing one way, and only one way.
- Cost: Competing on the basis that you are cheapest (E.g. Amazon)
- Differentiation: Competing on the basis that you are unique and different (E.g. Apple)
- Focus (Niche): Competing for a niche in the market (area, type of buyer, industry) and offer a product/service tailored for them (E.g. Tesla)
Whether we’re designing a campaign, building a sales system, or launching a GTM strategy — when you refine your focus totally in one area – you will be more effective. You cant be differentiation and cost for example – you must choose one and double down.
📊 A Harvard Business Review study of 1,000+ companies found that those with a clearly defined strategic position (via Porter’s framework) outperformed competitors by up to 42% in profitability.
(Source: HBR – Competitive Strategy Revisited)