Strategic Analysis

There are several generic strategy types that we are able to categorize. Some researchers break these down into just two or three categories, while others list several more.

We will try to keep this as simple as possible right now because, for our purposes, we need to know only the major categories. So we will break the types of strategies down into three categories: cost leadership, differentiation, and focus or niche strategies.

Cost leaders do everything that they can to lower the organizational costs required to produce their products or services. The differentiator company stresses its advantage over its competitors. Within a particular target segment or market niche, the firm may use differentiation or a cost leadership strategy.

Human resource strategy must be aligned with business strategy.