Weaknesses of Porter's Three Basic Types of Competitive Advantage




Competitive Advantage
Knowledge Center

Translate

Best Practices
10
Anneke Zwart
Student (University), Netherlands

Weaknesses of Porter's Three Basic Types of Competitive Advantage

Mouillot (2013) argues that although Porter's three basic types of Competitive Advantage are very useful with regard to research for competitive advantage, there are some limitations or disadvantages:
1. Missing Ethical Guidelines for Sustainability: People have become increasingly aware of the importance of sustainable development. In order to stay competitive in the current global environment, it is no longer enough to follow low-cost strategies. Rather, also sustainable issues and its subsequent ethics need to be considered. Therefore, the fact that Porter’s Competitive Advantage Types do not include any type of ethical guideline makes the framework less useful nowadays.
2. Mix of Portfolio and Positioning Strategy: Porter’s “Focus” is a portfolio strategy while the other basic types of Competitive Advantage have more to do with positioning. A company can follow both a cost-domination and differentiation strategy while being concentrated at the same time (Cost Focus or Differentiation Focus). The fact that these different types of Competitive Advantage are developed out of different perspectives can be very confusing, especially when searching for effective ways to achieve competitive advantages.
3. Little Specific Guidance: Mouillot concludes that Porter’s three types of Competitive Advantage remain important for firms in deciding on their competitive advantage. However, the framework does not help organizations to find out in what way or with what specific strategy these competitive advantages can be achieved.
Does anyone know additional limitations or disadvantages? Please react...
Source: Mouillot, P. (2013) “Asymptotic Effect in Cost Domination: The Way to Differentiation” Journal of Strategic Marketing Vol. 21 Iss. 6 pp. 529-540
 

Rating

 
1
Prasad Chundi
Consultant, India
 

On Weakness #3 of Porter's Three Basic Types of Competitive Advantage

On "Little Specific Guidance" - The methodology for achieving class-leading position following the c... Sign up

 
1
Andre van Niekerk, South Africa
 

Tactics to Address Weaknesses of Porter's Three Basic Types of Competitive Advantage

I think Porter's models are often used/critiqued out of context. I find it useful to think of the th... Sign up

 
1
Prasad Chundi
Consultant, India
 

Little Specific Guidance

@Andre van Niekerk: Thank you for your response. I am an admirer of Porter and used his generic stra... Sign up

   

More on Competitive Advantage:
Summary
Discussion Topics
Quotes Competitive Advantage
10 Routes to Competitive Advantage
Case studies in "Cost Leadership"
How Can Logistics Help to Achieve a Competitive Advantage?
Stuck in the Middle?
Changing from a Cost Leadership Strategy Into Differentiation
Competition versus Cooperation
Competitive Advantage or Die?
What is Competitive Advantage?
Competitive Advantage in a Monopolistic Market?
Health/Fitness Club Industry Analysis
Life Cycle Approach to Competitive Advantage
Focus your Efforts in Building Competitive Advantage
What are the Risks of a Differentiation Strategy?
Competitive Advantage in Tough Times
🔥Is Superior Value to Customers a Competitive Advantage?
Knowledge Management is more important than CA
👀Weaknesses of Porter's Three Basic Types of Competitive Advantage
4 Stages of Hypercompetition
Why are Firms Different? Why Successful Firms Differ?
Cost and Value in Analysis of Competitive Advantage: 2 Sides of the Same Coin?
Successful Companies: Only Three Rules Needed?
The Role of AI in Competitive Advantage
Special Interest Group

Do you know a lot about Competitive Advantage? Become our SIG Leader

Competitive Advantage
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.1 - Last updated: 30-3-2023. All names ™ of their owners.