Business Strategy

A business strategy specifies how a company will compete successfully. It answers the question "how will I beat my competitors?". Business strategy is also called "competitive strategy." To compete successfully, a company needs a competitive advantage - something in which it has an advantage over its competitors. If a company has no competitive advantage, sooner or later it will go out of business.

Porter (1996) identifies three "generic strategies":

  • Lower cost - company can produce at lower cost than competitors
  • Differentiation - company offers something different to competitors
  • Focus - company can meet the needs of a set of customers better than competitors

See also industry structure.

Link to the Porter (1996) article What is Strategy?1

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License