Research On The Category Of The Two Basic Competitive Strategies

The overall cost leadership strategy and the differentiation strategy are two basic competitive strategies which Michael Potter, the chief professor of Harvard business school, advanced in 1980. Since the competitive strategy was put forward by Potter, scholars at home and abroad discover the theory all the time and achieved rich theoretical results, and it has been proved to be good in practice result. Potter is honored as one of the most outstanding representative of the management history.However, whether Potter or the researchers of competitive strategy later haven't defined or illustrated on the definition of the industrial, which is the research background of competitive strategy. Consequently, the analysis basis of competitive strategy is not perfect, so it makes some difficulties in defining the implications of the two competitive strategies. And researchers at home and abroad haven't described the clear meaning of these two competitive strategies. So that further study can not continue smoothly.This paper tries to put forward some theory in detail of the analysis base of competitive strategy, which is the definition of the industry. By using the theory of customer perceived value, we propose the basic point and make illustration of the two competitive strategies in detail, and try to reconstruct the strategic principles. We classify these two strategies; criticize the statement of"uniqueness of overall-cost leadership in the industry"which discussed by Potter and elucidate the compatibility of the two strategies from the angle of relevant market which the firms are competing in.According to studying these problems of competitive strategy theories, we can define the category of the two basic competitive strategies clearly. We hope to provide some theoretical reference for further research of competitive strategy, and also provide theoretical basis for domestic enterprises to imply the two strategies in a better way.