Final answer:
Michael Porter identified three types of strategies: cost leadership, differentiation, and focus.
Step-by-step explanation:
Michael Porter identified three types of strategies: cost leadership, differentiation, and focus. Cost Leadership involves offering products or services at lower prices than competitors. Differentiation strategy focuses on providing unique and superior products or services compared to competitors. Finally, Focus strategy concentrates on serving a specific segment of the market effectively.
Cost leadership is a business strategy that aims to achieve a competitive advantage by becoming the lowest-cost producer in the industry. Organizations employing a cost leadership strategy focus on producing goods or services at the lowest possible cost while maintaining acceptable levels of quality. This approach allows companies to offer products or services to customers at lower prices than their competitors, potentially capturing a larger market share.