Porter (1985) proposed leadership in cost, differentiation, and niche strategy. Other authors have proposed additional strategies (Neumann, 1994, Wiseman, 1998 and Frenzel, 1996). Twelve strategies for competitive advantage are presented:
1. Cost leadership strategy
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It produces products and / or services at the lowest cost in between. A firm achieves cost leadership by saving on purchases, efficient business processes, forcing raising the prices paid by competitors and helping customers or suppliers reduce their costs.
2. Differentiation strategy
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It consists of offering different types of products or services by offering something different, such as Dell's strategy, which offers adaptation to the product.
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3. Niche strategy
You select a narrow market and focus on them and try to be the best in quality, speed and cost in the market.
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4. Growth strategy
Increase the market and get more customers or sell other products. This type is for companies that think long term, the Internet is a good marketing channel for this type of strategy.
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5. Strategic alliance
Work with partners, have alliances with other companies or with virtual companies. This type of strategy helps companies focus on core business. This type of strategy occurs mainly among electronic companies.
6. Innovation strategy
Introduce new products and services, add more applications to existing items or services, or develop new ways of making the product. Something to keep in mind is that when introducing an innovation it is necessary to keep innovating or someone else will copy the innovation and improve it.
7. Operational effectiveness strategy
It improves the way in which the internal processes of the company are executed so they do similar activities as their rivals but with improvements. These improvements increase worker and customer satisfaction, quality, and productivity.
8. Customer orientation strategy
This strategy focuses on making customers happy with the policy that the customer is king as RadioShack online did.
9. Time strategy
The time resource is used and managed in such a way that it is used as an advantage, time is money, concepts are managed as first mover advantage, just in time delivery or manufacturing these are the main concepts on which the strategy
10. Barriers to entry strategy
Create entry barriers through the introduction of innovative products or using information technologies as an exceptional service, in this way the companies can create barriers, since they have a better service, as in the case of CISCO that can receive compatibility and order information when testing the product.
11. Strategy to tie the supplier or customer (lock in)
What this achieves is that customers do not change providers but stay with themselves instead Choosing the competitor, having a lock in reduces the ability to obtain a discount for customers. An example of this could be the airline miles program, camera lenses, Apple, IBM, Microsoft, etc.
12. Switching cost increase strategy
This strategy creates dependency with the provider, since it causes economic changes to migrate costs to another company are very high, forcing customers to stay with the provider.
