ABSTRACT

Enterprises that approach the market without a clear strategy and make few choices are less successful than enterprises that do. From many years of research, M. Porter came to the conclusion that there are several strategic choices. These are the cost leadership strategy, the differentiation strategy and the focus strategy. For cost leadership, the enterprise will strive for the lowest price in the market. Enterprises that have been in the market for a long time have trouble with the automatic suction effect towards the middle. As soon as a newcomer to the market has selected one of the strategies, the enterprise is often too late to respond adequately and loses market share. Looking into the future needs of the market and starting from the strength of the enterprise are lacking in the model, though many enterprises put their products and services on the market in the way.