Michael Porter's 5 Generic Strategies
The Michael Porter's 5 Generic Strategies provide the organizations the opportunity to gain competitive advantage from 3 different bases.
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COST LEADERSHIP: Emphasizes on the produce of standarized products at a low per-unit cost to customers that are price sensitive.
I. Type 1: Low Cost- Strategy
Products or services offered to a wide range of customers at the lowest price in the market.
II. Type 2: Best Value- Strategy
Products or services offered to a wide range of customers at the best price value available in the market with the lowest price compared to rival's products with similar products.
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DIFFERENTIATION: Producing products and services considered in an unique industry and customers that are price- insensitive.
III. Type 3: Differentiation
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FOCUS: This strategy is focused on the target of a small market and for that reason it is pretended to fullfill the need of this customers.
IV. Type 4: Low Cost- Focus
It is offered the products or services to a niche group of customers with the lowest price of the market.
V. Type 5: Best Value- Focus
It is offered the products or services to a niche group of customers with the best value to the market.
CONCLUSION:
We choose Focus type 5 which is focused in best value, because our target market is large, profitable and where unemployed people are looking for new opportunities and companies want to improve their performance. For that reason we offer a qualified service with an affordable price value in the market.