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Porter's Generic Strategies Tool

Place your rivals and yourself on Porter's four positions, check who has the lowest costs, and choose one basis of competition you can hold: lower cost, or something different.

The four positions

  • Lower cost: produce for less than rivals, and win on price.
  • Uniqueness: offer something buyers value enough to pay more for.
  • Broad market, or one narrow segment of buyers.
  • In between: a bit cheaper and a bit better, which Porter calls stuck in the middle.

Your main rivals

You, today

How buyers see you now, not where you'd like to be.
Often the biggest player, because fixed costs spread over more units.
Is a price cut planned to win share?

Your notes never leave your browser

Rivals, the segment and what the position rests on stay on your computer and in your progress file. To write the diagnosis, only the positions and your answers are sent to our server, by place in your list. How it works

About the tool

Why it exists

Choose one basis of competition, and stay out of the middle

Porter's Generic Strategies say there are two ways to win in a market: produce at lower cost than rivals, or offer something buyers value enough to pay more for. Crossed with how much of the market you serve, that gives four positions. The firm that tries to be cheap and different at once ends up stuck in the middle.

This tool works on its own, and as stage 4 of our playbook for increasing market share, where it picks up the advantages that hold up from VRIO in stage 3. For the method, see our guide to Porter's Generic Strategies.

The method

How the tool works

Where everyone sits. Each rival, and you today, on one of the four positions, or in between. Who has the lowest cost per unit decides whether a cost position or a price cut can hold.

The checks. A cost position, or a price cut, when you are not the lowest-cost player; a position a rival already holds; a focus position with no segment named; a different position with nothing hard to copy behind it. Being different across the whole market is flagged as costly to fund.

What leaves your computer. Rivals, the segment and what the position rests on stay in your browser and your progress file. To write the diagnosis, the page sends our server only the positions and your answers, by place in your list, and the server keeps nothing.