Michael Porter's Generic Strategy of Cost Leadership - Pertinent Issues

As long as there is competition, prices are not administered and artificially controlled and there is emphasis on productivity, efficiency and optimum utilization of resources, the study and management of cost is here to stay. There was no specific structured study to show as to how such cost advantage can result into a competitive advantage until in 1980, Michael Eugene Porter came up with a book titled Competitive Strategy which introduced us to five basic forces driving industry competition and three generic strategies to outperform the competitors.