The [[Strategic triangle]] addresses the main drivers of a [[Competitive advantage]]. [[Customer benefits]] can be divided in threshold features and critical success factors. Both create consumer benefits the only the latter help a firm differentiate itself from its competitors. A number of different [[Strategy options]] exist for any company. These include:

* [[Cost leadership strategies]]
* [[Differentiation strategies]]
* [[Outpacing strategies]]

Real world strategies are characterized by numerous effects that constitute an overall strategy. The [[Strategic game-board]] framework provides three key questions that help managers formulate a consistent business strategy. Once a strategy is chosen, it needs to be linked to the [[Value chain]]. There are three main layers that determine the fit of activities within a firm:
# ''Consistency between activities''
## ''Activities'': The trade-off of the strategy directly leads to activities impact. A low-cost strategy will lead to optimizations throughout the value chain.
## ''Image and reputation'': Trying to be both a low cost and a differentiated provider can cause inconsistencies in a firm's image and reputation. Pursuing both will lead to more expensive communication costs.
## ''Strategy implementation'': It is easier to implement  a strategy if employees have a clear understanding of the vision.
# ''Reinforcement of activities''
## Activities withing an organization need a good fit with each other. A high class R&D site with a lousy sales force constitutes different messages.
# ''Optimization of efforts''
## Reinforcement primarily focuses on improving the customer experience by linking up separate activities. Optimization emphasis the importance of cost reduction through the elimination of redundancy and wasted activity.
Part of [[Strategies for E-Business]]
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businessmodelling_public
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Thu, 23 Sep 2010 18:47:44 GMT
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dirkjan
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Thu, 23 Sep 2010 18:47:44 GMT
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dirkjan
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Article
Business
M8
Modeling
creator
dirkjan