Need an argumentative essay on According to Porter (1985:12), if a firm is to attain a competitive advantage, it must make a choice about the type of competitive advantage it seeks to attain and the s

Need an argumentative essay on According to Porter (1985:12), if a firm is to attain a competitive advantage, it must make a choice about the type of competitive advantage it seeks to attain and the scope within which it will attain it. Critically discuss the three generic strategies u. Needs to be 7 pages. Please no plagiarism.

In his statement, the three generic strategies were defined alongside two distinct dimensions: the strategic strength and the strategic scope. A strategic scope is a demand-side dimension and mainly looks at the competency as well as the strength of a particular firm (Sehgal, 2011). Particularly he defined two competencies that he felt relevant and most important which were the product costs otherwise stated as efficiency and the product differentiation.

Empirical studies on the profit impacts of the marketing strategy show clearly that a firm, which has a high market share, is often quite profitable although there were many firms that have had small market share (Lowy, 2011). Indeed, the firms that were least profitable were those that had moderate market share. However, this was referred to as a hole in the middle problem. Porter argued and gave an explanation that firms that had high market share were found to be most successful since they pursued a cost leadership strategy while those with low market shares were successful because they made good use of the market segmentation in focusing on a small although profitable sort of market niche. It was observed that the firms in the middle were less profitable since they lacked a viable generic strategy. He also argued that combining multiple strategies would only be successful in one case (Haberberg, 2008).

Further, he added that combining both market segmentation and the product differentiation would be an effective way of matching a firm’s product strategy, which relied on the supply side to the characteristics of one’s target market segment on the demand side. Porter proved that, it was impossible to merge both cost leadership with the product differentiation in implementation due to conflict between the cost minimization and the additional cost, which is referred to as the value-added