Chapter 2, Problem 5PSA

Program Plan Intro

Porter’s Value Chain:

• Porter has proposed a strategy about the business by considering certain topics like leadership, differentiation and focus, which are termed as Porter’s three generic strategies.
• In these strategies, he has mainly focused on low cost, differentiation of rivals, importance of high price and many more.
• He introduced the concept of value chain in one of his books named “Competitive Advantage” which gives information of the activities carried by the organization to attract the users.

Competitive Strategy:

Competitive strategy is a long-term strategy or plan used in any company or organization for gaining the continuous competitive advantage against the competitors. There are four types in competitive strategies namely, cost leadership, differentiation, focus and market segmentation.