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Business Strategy

Stock price is not the goal. It is a result. The goal is superior economic performance. Strategy is about creating superior economic performance. It is economic performance that really creates value.
Michael Porter

• Cost Optimization
• Benefit Optimization

The terminology for the two primary strategies that Michael Porter popularized were cost leadership and differentiation.

However, when you sit back and have a look at it again, you realize that cost leadership is simply another kind of differentiation — one based on cost.

So the fundamental business strategy is differentiation. If you can’t do something any better than anyone else, then no one will pay you to do it.

You can differentiate by focusing on the costs, benefits or both to create just the right differentiation to suit your purpose.

Reduced costs and increased benefits both create value.