ASSESSING PORTER'S (1980) MODEL IN TERMS OF ITS GENERALIZABILITY, ACCURACY AND SIMPLICITY

Abstract

ABSTRACTThe Porter (1980) model of generic strategies is evaluated in terms of simplicity, accuracy (i.e., predictive and explanatory power), and generalizability, through an empirical analysis of PIMS data. Results lead to the following conclusions: (1) the simplicity of Porter's model captures much of the complexity inherent in strategic gestalts; (2) Porter's framework could be improved by viewing it as providing three important dimensions of strategic positioning rather than three (or four) distinct strategies; (3) performance norms vary significantly across strategic types, though Porter's predictions of performance are not entirely accurate; (4) strategies such as those described by Porter are possibly more contingent than generic, thus limiting the generalizability of some prescriptions implicit in the model.