Competitive Strategy
Competitive Strategy is defined as the long term plan of a particular company in order to gain competitive advantage over its competitors in the industry. It is aimed at creating defensive position in an industry and generating a superior ROI (Return on Investment). Such type of strategies play a very important role when industry is very competitive and consumers are provided with almost similar products. One can take example of mobile phone market. Before devising a competitive strategy, one needs to evaluate all strengths, weaknesses, opportunities, threats in the industry and then go ahead which would give one a competitive advantage. Types of competitive strategies by Porter According to Michael Porter, competitive strategy is devised into 4 types: 1. Over All Cost Here, the objective of the firm is to become the lowest cost producer in the industry and is achieved by producing in large s...