Strategic Nimbleness

by Dennis A. Adams

In 1980, Michael Porter wrote in his classic book Competitive Strategy: Techniques for Analyzing Industries and Competitors that there are two generic strategies for companies competing in broad markets. These two strategies, differentiation and cost leadership, are often thought of as the foundation for competition within the industry.1 The competitive advantage that a company might enjoy in its market, however, might be overtaken no matter what strategy it is using if a competitor differentiates its products and services or improves its costs and margins. How a competitor would do this is wrapped up in the notion of innovation.

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Strategic NimblenessThu Feb 18 08:20:13 CDT 2010