Page 20 - Agri-Business Management Handbook

GENERIC STRATEGIES

As we design strategies to grow our businesses and sustain our
competitive advantages, three generic or universal principles
developed by Michael Porter can guide us in thinking. These
strategies are differentiation, cost leadership and focus.

Generic strategy Description
Differentiation It is about being unique or different from
the competitors.
Cost leadership
Focus Helps to create loyalty, premium markets
and protect ourselves from entry of new
competitors in the industry.

Ensuring that our goods and services are
produced at the lowest cost possible.

Focus involves narrowing down or
emphasizing on a certain market niche.
This strategy enables the business to
develop expertise and have strong
relationships with customers in this market
niche.

15AGRI-BUSINESS MANAGEMENT HANDBOOK |