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Business-Strategy Principles
Business-Strategy Principles
Principles
What are Business-Strategy Principles?
Strategy principles are the fundamental rules and guidelines
that serve as a foundation for reasoning and decision making
about the longer-term direction for an enterprise. When used
properly, strategy principles help organizations grow and
achieve competitive advantage in the marketplace. Business-
strategy principles help executives decide where to compete
(markets, geographies and products) and how to compete
(cost leadership, customer service or product performance).
The strategy principle of “differentiation,” for example,
suggests that businesses that offer unique services or special
product features that appeal to customer needs stand out in
the marketplace and command a premium price. This
strategic principle enables an organization to create more
value and outmaneuver rivals and competitors.