Porter suggests that generic competitive strategies are based on what he calls the factors that determine competition or, in other words, based on an analysis of the competitive environment. Describe one competitive strategy and illustrate how this strategy has been applied to an organization or market.

Answers should contain one of these strategies: Cost leadership, Differentiation and Focus.
Cost Leadership - With a cost leadership strategy, the idea is to gain a competitive edge by achieving a cost advantage. In other words, you must reduce your costs as much as possible. This gives the company an advantage over its rivals and also over its suppliers and clients.
The classic example is Wal-Mart's mass purchasing. Another example is IBM and Boeing. They are cost leaders who have chosen to use their lower costs not to reduce prices but to generate higher returns which have subsequently been invested in marketing, R&D and manufacturing as a means of maintaining and strengthening their position.
Differentiation - The aim of the differentiation strategy is to ensure that either the company in general or certain specific elements (such as its products, customer care, quality, etc.) are perceived to be unique by both clients and suppliers. As one might suppose, this kind of strategy means that the company involved must have certain capacities and skills (i.e., technology, marketing, etc.) that enable it to achieve, maintain, and develop a certain degree of differentiation.
Example: Marriott International. Marriott International has the Ritz-Carlton brand name, directed at the luxury segment of the market. Although J.W.Marriott Hotels might be regarded as being in the same category, Ritz-Carlton hotels tend to be deluxe properties that are a cut above Marriott International. Most operate under the name Ritz-Carlton, although some have their own individual names.
Differentiation can also be achieved by means of the brand image and packaging, a position particularly suited to mature markets in which the products are often physically indistinguishable. For example, the cola drinks with Pepsi Cola and supermarkets' own brands and the fashion clothing industry with Gap and Banana Republic which design casual clothes aimed primarily at the same customer demographics.
Focus - Organizations pursuing focus strategies concentrate on a special market segment-niche customer group, geographical region, or product or service line. The objective is to serve the needs of the segment better than anyone else. Competitive advantage is achieved by combining focus with either differentiation or cost leadership.
Example: A good example of differentiation focus is that of Porsche, the German sports car manufacturer. It focuses on the performance car segment of the automobile market and does not produce cars for other segments of the market. Its cars are sold on the basis of brand name based upon consumer perceptions that its products are technically superior to those of competitors, are better designed, have superior performance and are more reliable than those of their competitors.