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Porter distinguishes between factors which characterize the nature of competition.
1. Factors in one industry compared with another. That make one industry as a whole potentially more profitable than the other
2.factors within a particular industry lead to competitive strategy that individual firms select
How do these exactly differ? I’m not able to distinguish or compare. Could you help me understand, please?
I don’t know if this will help or not but the first relates to porters diamond more and the second relates more to generic strategy selection.Ideally,it is better if firms compete on different factors within the competitive space.This involves basically competing on cost or quality.However, focus or hybrid strategies are also possible.
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