Strategic mistakes (AVOIDABLE) The topicality of Michel Porter’s generic strategies
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Abstract
This article explores the topicality of Porter’s generic strategies, assessing about their applicability on two specific automotive industry projects: The Smart and the New Beetle.
After performing a documentation analysis on these two projects, it was concluded that both of them may be considered avoidable strategic mistakes as they show the risks of higher differentiation that is not being paid by the customer, no matter how if it is about recognized brands or icon products. Hazards and risks, like big losses and negative margins, are applicable to every firm.
This is a qualitative investigation with a not experimental and transversal research design.
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