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Competitive Marketing Strategy Porter Revisited

Competitive Marketing Strategy Porter Revisited In this article which is based on a marketing analysis of MichaelPorters definition of competitive strategies, the confusion present inmarketing and strategic management texts as to the definitions of thethree strategies of low cost, differentiation and focus is noted. Theidea that using price to differentiate means a firm is using a low coststrategy is dismissed and the value of a definition of focus strategy asmerely some degree of extreme differentiation is questioned. Newdefinitions of the three strategies are proposed which are based uponthe idea that firms react to, and take actions which influence, thestructure of the market in which they operate. They influence marketstructure through determining the markets proximity level the minimumlevel of marketplace performance which a firm must reach in order tocompete across the broad marketplace. If a firm has the ability to reachthis level and go further to excel in the provision of one or morebenefits, it can implement a differentiation strategy. Alternatively, itcan attempt to lift the markets proximity level or partake in imitativeactivity, which reduces the potential bases for differentiation in themarket, a low cost strategy only sensible for the firm with the lowestcosts of production. If a firm lacks the ability to reach the proximitylevel, it must seek segments which do not require reaching proximity inorder to serve them, a focus strategy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Marketing Intelligence & Planning Emerald Publishing

Competitive Marketing Strategy Porter Revisited

Sharp, Byron
Marketing Intelligence & Planning , Volume 9 (1): 7 – Jan 1, 1991
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References (13)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0263-4503
DOI
10.1108/02634509110139556
Publisher site
See Article on Publisher Site

Abstract

In this article which is based on a marketing analysis of MichaelPorters definition of competitive strategies, the confusion present inmarketing and strategic management texts as to the definitions of thethree strategies of low cost, differentiation and focus is noted. Theidea that using price to differentiate means a firm is using a low coststrategy is dismissed and the value of a definition of focus strategy asmerely some degree of extreme differentiation is questioned. Newdefinitions of the three strategies are proposed which are based uponthe idea that firms react to, and take actions which influence, thestructure of the market in which they operate. They influence marketstructure through determining the markets proximity level the minimumlevel of marketplace performance which a firm must reach in order tocompete across the broad marketplace. If a firm has the ability to reachthis level and go further to excel in the provision of one or morebenefits, it can implement a differentiation strategy. Alternatively, itcan attempt to lift the markets proximity level or partake in imitativeactivity, which reduces the potential bases for differentiation in themarket, a low cost strategy only sensible for the firm with the lowestcosts of production. If a firm lacks the ability to reach the proximitylevel, it must seek segments which do not require reaching proximity inorder to serve them, a focus strategy.

Journal

Marketing Intelligence & Planning – Emerald Publishing

Published: Jan 1, 1991

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