MARKETING PLAN EXPLORER
Copyright 2002, Professor Jerome M. Katrichis
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II. INTERNAL SITUATION ANALYSIS
C. 3. Strategy
Strategy is in a general sense how the organization will go about accomplishing its goals. According to some authors, strategy is defined by four components: resources, offerings, timings, and relationships.
In general you can think of your organization's strategy as following one of three choices: cost leadership, differentiation, or focus. The explanation of a cost leadership strategy is pretty straightforward. It simply means that your organization has a cost advantage in your industry. Of course, in any industry, there can be only one cost leader so it isn't a strategy available to many firms.
A differentiation strategy is far more common. It typically means that your offering is different from those of your competitors. Some authors argue that a focus strategy is simply another way to differentiate yourself so it isn't really different from a differentiation strategy. In a focus strategy, you "focus" on a particular segment of customers.