Past Year Question October 2012: Part C,Question 2 (a)

Three porter Generic Strategies are cost leadership,differentiation and focused strategies.

Cost leadership is becoming a low-cost producer in the industry allows the company to lower prices to customers.
Competitors with higher costs cannot afford to compete with the low-cost leader on price.

Differentiation is create competitive advantage by distinguishing their products on one or more features important to their customers.
Unique features or benefits may justify price differences and/or stimulate demand.As example,i-care by Proton.

Focused strategies is target to a niche market and concentrates on either cost leadership or differentiation.