What strategies does Porter suggest to define the business operations?
Porter suggests the use of 3 generic strategies to define the business operations of any firm. These 3 generic strategies are Differentiation, cost leadership, and focus. The differentiation strategy focuses on the innovation in the products being manufactured by the firm. Apple Corporation’s iPod was considered as an innovative product, which differentiated Apple from its competitors. Apple’s iPhone further enhanced the Apple Corporation’s innovative brand in the mind of customers. No one ever imagined that any product in the modern time could affect the customer so much. The queue of the customers outside Apple stores is a living testimony of the success of the differentiation strategy in responding to the challenges posed by the business environment. Cost leadership strategy is derived from the economies of scale. The firm chooses to reduce the cost of its product to the lowest level among all its competitions, though maintaining the same quality level. The success of IP (Internet Protocol) telephony can be an example here. The focus is another strategy, which is used in positioning school. Bose Speakers can be the example of such a strategy. The Focus of this organization in developing the best sound system of the world has finally been recognized and the products of this organization are considered as a benchmark in the quality of sound.