The Overall Cost Leadership + Strategic Portfolio Of Differentiated Competitive Advantage

Both cost leadership strategy and differentiation strategy, proposedby Professor Michael Porter, have their unique advantages, but the fact ishow to leverage these two strategies in attempt to gain the corporationslong lasting competitive edges.This article starts with the brief review of the definitions of costleadership strategy and differentiation strategy, their application ranges,as well as their respective advantages. In the later part, we move on to theexplanations of the potential problems when applying each strategyindividually, and furthermore illustrate the significance of thecombination of these two strategies.In chapter three, we gain an insight into a simplified theoreticalmodel, proposed by some scholars. We also point out its impracticalities,contributing to its assumptions and its hardly measurable factors.In the final part, we summarize several alternatives, including thesix-sigma quality strategy, vale innovation, experience marketing and thecustomer information management, which could be used as an effectivetool combining the two strategies.