Porter's Generic Strategies and Firm Performance

The competitive environment is an external impact factor that can be examined using Michael Porter's strategy. In this resource, locate Porter's three generic strategies impacting a firm's performance. Create a chart, and then choose one of the brands you have examined in the branding section. Apply these options to each brand and conclude which is the best match. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.

Abstract

In this study, the significance of using Porter's generic strategies in firms that operate in competitive environments is investigated. The aim is to indicate the effects of Porter's generic strategies (low-cost strategy, differentiation strategy, and focus strategy) on firm performance. The questionnaires of the study have been prepared, the responses have been obtained, and the econometric model is constructed to measure these relationships. Findings stemmed by data that were taken from 113 firms that operate in the Republic of Kosovo. t test, Pearson's correlation analysis, and multivariate regression analysis were used to provide testing of hypotheses. Econometric results suggest that pursuing differentiation strategy provides higher firm performance compared to two other Porter's generic strategies (low-cost strategy or focus strategy) that have a positive impact as well.

Source: X. Islami, N. Mustafa, and M. Topuzovska Latkovikj, https://fbj.springeropen.com/articles/10.1186/s43093-020-0009-1
Creative Commons License This work is licensed under a Creative Commons Attribution 4.0 License.