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

Abstract

ABSTRACT The 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.