Question

According to Michael Porter, the 3 generic strategies that provide a good starting point for strategic thinking include:

A. Diversification, integration, and cost leadership
B. Focus, differentiation, and cost leadership
C. The Boston Consulting Group (BCG) matrix, the product-market growth matrix, and customer lifetime value
D. Intensive growth, Integrative growth and Diversification growth

Answer 1

The three generic strategies proposed by Michael Porter for strategic thinking in business are: focus, differentiation, and cost leadership.

Step-by-step explanation:

The correct answer is B. Focus, differentiation, and cost leadership.

Michael Porter, a renowned strategy expert, proposed the three generic strategies that provide a good starting point for strategic thinking:

1. Cost leadership: This strategy involves offering products or services at a lower cost than competitors. The focus is on achieving economies of scale, efficient operations, and cost minimization.
2. Differentiation: This strategy focuses on offering unique, differentiated products or services that meet customers' specific needs or preferences. It involves creating a competitive advantage through innovation, branding, and superior quality.
3. Focus: This strategy involves targeting a specific market segment or niche and tailoring products or services to meet the unique needs of that segment. The goal is to achieve a competitive advantage by serving a narrow market effectively.

By adopting one or a combination of these strategies, businesses can position themselves in the market and gain a competitive edge over their rivals.