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A generic business-level strategy is a strategy that gives a company a competitive advantage over its rivals, resulting in above-average profitability. Michael Porter is known for his research in competitive analysis. According to Porter, generic business-level strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus. In similar fashion, our textbook identifies four categories of generic business-level strategies.
Broad Low-Cost Strategy
Broad Differentiation Strategy
Focus Low-Cost Strategy
Focus Differentiation Strategy
Analyze and define the Generic Business-Level Strategies. Then, discuss which of the strategies is employed by Microsoft Corporation and make suggestions of how they should develop their strategy in the future. Should they consider changing their strategy? Why or why not?
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