Porter's 3-D Model

Porter's 3-D Model is a strategic framework that helps businesses analyze their competitive position. It considers three dimensions: (1) competitive advantage—cost leadership vs. differentiation; (2) the industry scope—whether they target a broad or niche market; and (3) operational scope—whether they focus on global, regional, or local markets. By examining these dimensions, companies can identify their strengths, weaknesses, and optimal strategies for gaining a competitive edge in their chosen market. The model guides businesses in positioning themselves effectively to outperform competitors.