According to Porter, strategies allow organizations to gain competitive advantage from two different bases. What are the bases? A. Cost leadership and differentiation B. Initiator and differentiation C. Being a first-mover, being a late-follower, and differentiation D. Differentiation and being a first-mover E. Cost leadership and initiator

The porter strategy involves developing the "edge" that gets you the sale and takes it away from your competitors. The two main ways of achieving this within a Cost Leadership strategy are;

Increasing profits by reducing costs, while charging industry-average prices.

Increasing market share by charging lower prices, while still making a reasonable profit on each sale because you've reduced costs.

The Differentiation Strategy

Differentiation involves making your products or services different from and more attractive than those of your competitors.

In order to make a success of a Differentiation strategy, organizations need:

Good research, development and innovation.

The ability to deliver high-quality products or services.

Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.