ocument in Document1 - Saved to this PC Search Layout References Mailings Review View Help Michael Porter's Generic Strategies Michael Porter suggests that there are two basic generic strategies firms can pursue: low cost or differentiation. These combine with market "scope" --- the range of market segments targeted to produce the following four strategies. Cost Leadership (Broad Market Target): The strategy aims at being the low-cost producer in an industry. The strategy is realized through gaining experience, investing in large-scale production facilities and looking to each stage of the value chain for ways of reducing operating costs. Cost Leadership (Focus): Same as Cost Leadership above but seeks to serve narrow market segments. Differentiation: This strategy involves the development of unique products or services, relying on brand/customer loyalty. A firm offers higher quality, better performance, or unique features. Differentiation (focus): Same as Differentiation above but seeks to serve narrow market segments. Match the generic strategy to the organizations below. 1) Lexus 2) Ivory discount soap 3) Porsche 4) Ikea Brands/Corporation S.N. 1 Generic Strategies Cost leadership-broad target Differentiation-focus Differentiation-broad target Cost-leadership-focus