Comment on the following: Porter has pronounced three generic strategies, namely "Cost Leadership", "Differentiation", and "Focus".

Michael Porter pronounced the three generic strategies, namely "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services), and "Focus" (offering a specialized service in a niche market). The Cost Leadership Strategy: This strategy involves the firm winning market share by appealing to cost-conscious or price-sensitive customers. This is achieved by having the lowest prices in the target market segment, or at least the lowest price-to-value ratio (price compared to what customers receive). The Differentiation Strategy: A differentiation strategy is appropriate where the target customer segment is not price-sensitive, the market is competitive or saturated, customers have very specific needs which are possibly under-served, and the firm has unique resources and capabilities which enable it to satisfy these needs in ways that are difficult to imitate. The Focus Strategy: The focus strategy is also known as 'niche' strategy. This is so because companies adopt focus strategies, focus on niche markets and, by getting hold of the dynamics of such niche market and unique requirements of its customers. Based on such understanding, they develop exclusively low-cost products particularly for such niche market. Due to this, strong brand loyalty is developed with its customers, making it difficult for competitors to enter.