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Michael Porter's Ideas on Strategy
In the 1980's Michael Porter developed some models for strategic analysis that focused on the five forces presented below. The best industry to be in is one which is most favorable in these areas.
Out of this analysis, he suggests that it makes sense for a Strategic Business Unit to choose one of three "generic" strategies - cost, differentiated, or focus.
The Cost Strategy suggest that one develop the least cost product for a segment. Often this is associated with selling high volumes at lowest price.
The Differentiated Strategy suggests that one develop a unique product and charge a higher margin for it.
The Focus Strategy suggest that one focus on the special needs of a niche segment.
MikesBikes-Advanced is ideally suited to experimenting with these different strategies.