Premium
Generic competitive strategies—An analytical approach
Author(s) -
Karnani Aneel
Publication year - 1984
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250050406
Subject(s) - profitability index , position (finance) , oligopoly , industrial organization , competition (biology) , market share , field (mathematics) , competitive advantage , economics , product differentiation , microeconomics , computer science , business , marketing , mathematics , ecology , finance , cournot competition , pure mathematics , biology
The concept of generic strategies for gaining competitive advantage has received considerable attention recently in the business policy field. Two generic strategies usually mentioned are low cost position and highly differentiated position. This paper uses a game‐theoretic model of oligopolistic competition to provide analytical support for these generic strategies, and, in places, to refine the conclusions drawn from previous research in this field. Another conclusion derived from the model is that a superior cost or differentiation position leads to a larger market share, which in turn leads to higher profitability.