BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -According to Michael Porter, the author of “Competitive Advantage, ” “Competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firm’s cost of creating it.” There are two basic types of competitive advantage: cost leadership and differentiation.

Detailed explanation-2: -Michael Porter defines three strategy types that can attain a competitive advantage. These strategies are cost leadership, differentiation, and market segmentation (or focus). Cost leadership is about achieving scale economies and utilizing them to produce high volume at a low cost.

Detailed explanation-3: -However, Michael Porter defines strategy as competitive position, “deliberately choosing a different set of activities to deliver a unique mix of value.” In other words, you need to understand your competitors and the market you’ve chosen to determine how your business should react.

Detailed explanation-4: -Michael Porter is the founder of the modern strategy field and one of the world’s most influential thinkers on management and competitiveness.