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The strategic orientation of Portuguese firms in the porcelain industry is examined empirically. In the process, the effective use of traditional generic strategies as opposed to emerging strategies is compared. Special attention is devoted to the utility of classical Porter’s generic strategies in comparison to time‐based differentiation strategy. The study concludes that different variations of the classical differentiation strategy, which includes time‐based differentiation, appear to be more effective than cost leadership or mixed generic strategies.

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