The Sage Course Companion on Marketing is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like a marketer but also to think about the subject critically. It is much more than a revision guide for undergraduates; it is an essential tool that will help readers take their course understanding to new levels and help them achieve success in their undergraduate course.
Porter's Competitive Strategies
Porter (1985) suggests four basic competitive strategies: three of these are potentially winning strategies and the fourth is almost invariably a losing strategy:
- Overall cost leadership. A company that minimises its costs can either reduce its prices or increase its profitability, thus obtaining a competitive advantage over other companies. Minimising costs may be a result of developing efficient systems, it may be a result of negotiating better supply prices, or it may mean moving production to lower-cost countries.
- Differentiation. Companies that are able to offer products which their customers perceive as significantly different from competing [Page 43]products are able to charge premium prices (provided, ...