Three Generic Strategies

Each requires a particular philosophical approach to be applied throughout the whole organization.

A business strategy is unique to the organization and environment in which it operates. However, research conducted by Professor Michael Porter recognizes three generic organizational strategies that businesses and use to gain and maintain competitive advantage within a market: cost leadership, differentiation, and focus. Each requires a particular philosophical approach to be applied throughout the whole organization.

You an choose to pursue one of the three strategies in its pure form or to devise a hybrid. If you do the latter, monitor the strategy regularly to ensure its clarity and integrity -- a hybrid can easily drift into compromise.

ACTION POINT: Know your strategy and regularly monitor it for clarity to prevent drift.