Competitive Scope Concept

The expression Competitive Scope is a concept developed by Michael E. Porter in his bestseller Competitive Advantage, forming one of the variables of his model of characterization and evaluation of the strategy followed by the company. According to Porter, there are two basic types of competitive advantage: the leadership in cost and differentiation, which, together with the competitive scope, define the different types of possible generic strategies.

Competitive scope can be narrow or wide. In the case of being narrow, such means that the company is concentrated in one only market segment or niche. In the case of being wide, means that the company seeks to reach a wider market composed by several market segments.