A Method for Selecting Enterprise Competitive Strategy Based on Porter’s Competitive Strategy Matrix

In order to gain a competitive advantage for enterprises in the market competition, how to use the desirable decision analysis method to make competitive strategy selections for enterprises is an important research topic. Considering issues of competitive strategy selection for enterprises, in this paper, a method for selecting enterprise competitive strategy based on Porter’s competitive strategy matrix is proposed. First, the decision analysis framework for selecting a competitive strategy for enterprises is given based on Porter’s competitive strategy matrix. Then, evaluation indexes of the four dimensions of which low-cost leadership, differentiation, broad market scope and narrow market scope are selected based on the bibliometrics analysis, and the evaluation indexes with regard to each dimension are determined. Furthermore, based on linguistic evaluation information with regard to evaluation indexes provided by experts, the processing method of the 2-tuple linguistic representation model and the decision-making trial and evaluation laboratory (DEMATEL) method are used to calculate the weights of the evaluation indexes and the overall evaluation result of each dimension, and the enterprise competitive strategy can be selected by structuring a radar map. Finally, a case study is given to illustrate the feasibility and validity of the method proposed in this paper. It is important to highlight that the proposed method has a clear concept and the calculation process is simple and easy to operate for managerial staffs, it is new and different from the existing method, and it gives the managerial staffs a very efficient design analysis method or tool, it has a high value of practical application.