- A.A six-bucket scan of macro forces — Political, Economic, Social, Technological, Legal, Environmental — that may create opportunities or threats for a firm.
- B.Kim & Mauborgne's framework for creating uncontested market space by reducing/eliminating competitive factors and raising/creating new ones — value innovation, not competition.
- C.Porter's 2x2 of strategic positioning — Cost Leadership, Differentiation, Cost Focus, Differentiation Focus — and the warning against being "stuck in the middle." ✓
- D.Porter's 2x2 of strategic positioning — Cost Leadership, Differentiation, Cost Focus, Differentiation Focus — and the warning against being "stuck in the middle."
Porter's Generic Strategies is porter's 2x2 of strategic positioning — Cost Leadership, Differentiation, Cost Focus, Differentiation Focus — and the warning against being "stuck in the middle." The other options describe related but distinct concepts in Strategic Frameworks — see the deep-dive guide for the full distinction.
How to think about questions like this
Trying to be both low-cost and differentiated usually wins neither. Questions like this test whether you can distinguish Porter's Generic Strategies from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.
When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.