Which of the following is NOT one of Porter’s three generic strategies?

Prepare for the CIMA Managing Performance (E2) Exam. Practice with flashcards and multiple-choice questions, each with explanations. Get ready for your exam!

Multiple Choice

Which of the following is NOT one of Porter’s three generic strategies?

Explanation:
Porter’s three generic strategies describe how a firm positions itself to compete: pursue the lowest cost in the industry, offer products or services that are distinctly different, or focus on a narrow market segment with tailored offerings. Market penetration is about growing sales within existing markets and increasing market share, which is a growth tactic rather than a fundamental competitive position. So it isn’t one of Porter’s generic strategies. The other options align with his framework: cost leadership, differentiation, and focus (niche).

Porter’s three generic strategies describe how a firm positions itself to compete: pursue the lowest cost in the industry, offer products or services that are distinctly different, or focus on a narrow market segment with tailored offerings. Market penetration is about growing sales within existing markets and increasing market share, which is a growth tactic rather than a fundamental competitive position. So it isn’t one of Porter’s generic strategies. The other options align with his framework: cost leadership, differentiation, and focus (niche).

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