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What are the four competitive strategies based on the Porter's

model and what do they mean? For each competitive strategy, give an
example of a company in real world.

User Erikreed
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1 Answer

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Final answer:

Porter's model suggests four competitive strategies: differentiation, cost leadership, cost focus, and differentiation focus. Examples of companies using these strategies include Apple, Walmart, Dollar General, and Tesla.

Step-by-step explanation:

According to Porter's model, the four competitive strategies are differentiation, cost leadership, cost focus, and differentiation focus.

Differentiation involves offering unique products or services in the market. An example of a company employing this strategy is Apple, which differentiates itself through innovative design and features.

Cost leadership focuses on offering products or services at a lower cost than competitors. Walmart is an example of a company that uses this strategy by providing low-priced products.

Cost focus strategy targets a specific market segment with a low-cost approach. Dollar General is an example of a company following this strategy by offering low-priced products in rural areas.

Differentiation focus strategy involves targeting a specific market segment with unique products or services. Tesla is an example of a company employing this strategy in the electric vehicle market.

User Hertzi
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