Generic Strategy Model The Porter generic strategy model examines two major marketing planning concepts and the alternatives available with each: competitive scope (broad target or narrow target) and competitive advantage (lower cost or differentiation). By combining the two concepts, the Porter model identifies these basic strategies: cost leadership, differentiation, and focus. Product-Market Matrix Strategy The product/market opportunity matrix identifies four alternative marketing strategies that may be used to maintain and/or increase sales of business units and products: market penetration, market development, product development, and diversification. Strategy for Hypercompetition Era An examination of successful hypercompetitive firms by Richard D’Aveni – and published in his remarkable book, Hypercompetion -- revealed that many utilized some or all of a new set of approaches—the New 7-S's. The first two of these S's—stakeholder focus and strategic soothsaying—are concerned with establishing a vision for how to disrupt the market. Industry and Competitive Analysis Dominant economic characteristics of the industry environment covers market size and growth rate, geographic scope, number and sizes of buyers and sellers, pace of technological change and innovation, scale economies, experience curve effects, capital requirements, and so on. Factors Shaping the Choice of Strategy An industry's competitive conditions and overall attractiveness are big strategy-determining factors. A company's strategy has to be tailored to the nature and mix of competitive factors in play : price, product quality, performance features, service, warranties, and so on. Types of Business Strategy Strategy's original application had to do with military issues— protecting one's homeland from invading armies or, as one of those armies, finding new, more effective ways to conquer territory. In fact, military history has become the basis for many marketing strategies and drives much of the current marketing philosophy. Seven Market Position Strategies As the name suggests, monosegment positioning involves developing a product-and-marketing program tailored to the preferences of a single market segment. Successful implementation of this strategy would give the brand an obvious advantage within the target segment, but would not generate many sales from customers in other segments. This strategy is best used with mass-marketing. Cornerstones of Growth Strategy A simple way to view the Growth System is as gears in an engine. The Growth System's three basic gears (cornerstones) are commitment, strategy, and capability. The following paragraphs give some examples of the role each cornerstone plays in the Growth System. Five Components of Strategy There are five components—or sets of issues—within a well-developed strategy. First is Scope. The scope of an organization refers to the breadth of its strategic domain—the number and types of industries, product lines, and market segments it competes in or plans to enter. Decisions about an organization's strategic scope should reflect management's view of the firm's purpose or mission. This common thread among its various activities and product-markets defines the essential nature of what its business is and what it should be. Competitive Forces in Porter Model Five competitive forces in Porter's Model are as follows: 1) Rivalry among competing sellers; 2) Threat of potential entry 3) Competition from substitutes; 4) Power of suppliers and 5) Power of customers