Coopers Creek strategies Paulien 
Business strategy
We focus on business strategy because we consider our organisation as a strategic business unit (SBU) which is any business that supplies goods or services to a distinct domain of activity.
Porter’s generic competitive strategies
A competitive strategy is concerned with how a SBU achieves competitive advantage in its domain of activity. Porter defines 3 possible generic strategies to use as a business.
The cost-leadership strategy has for aim to become the lowest-cost organisation in a domain of activity. For instance, in order to achieve cost leadership, input costs need to be low or there has to be economies of scale. For example, Liddl (supermarket industry) or Ryanair (air travel industry). The differentiation strategy involves uniqueness of a product or service that is sufficiently values by the customers to allow a price premium. For instance, Jumbo (supermarket industry) or KLM (air travel industry). The third strategy a company may adapt is the focus strategy which targets a specific segment or niche of a certain domain of activity excluding others, for instance a shop selling Chinese food in Holland (supermarket industry) or a private jet company (air travel industry).
Bowman’s strategic clock
Another way of approaching the three generic strategies is with the strategy clock. This framework is based on prices instead of costs as it’s easier to compare competitors on prices than costs. It allows organisations to travel around the cost changing strategy or combining them opposed to Porter’s sharp contrast between the differentiation and cost leadership strategy. This framework or clock involves four different zones. The differentiation zone which goes from approximately 12 o’clock to 2 o’clock. Close to 12 o’clock the strategy moves towards differentiation without a price premium often used by firms to gain market share. Once the company has gained sufficient market share it can move towards 2 o’clock focusing on a differentiation
We focus on business strategy because we consider our organisation as a strategic business unit (SBU) which is any business that supplies goods or services to a distinct domain of activity.
Porter’s generic competitive strategies
A competitive strategy is concerned with how a SBU achieves competitive advantage in its domain of activity. Porter defines 3 possible generic strategies to use as a business.
The cost-leadership strategy has for aim to become the lowest-cost organisation in a domain of activity. For instance, in order to achieve cost leadership, input costs need to be low or there has to be economies of scale. For example, Liddl (supermarket industry) or Ryanair (air travel industry). The differentiation strategy involves uniqueness of a product or service that is sufficiently values by the customers to allow a price premium. For instance, Jumbo (supermarket industry) or KLM (air travel industry). The third strategy a company may adapt is the focus strategy which targets a specific segment or niche of a certain domain of activity excluding others, for instance a shop selling Chinese food in Holland (supermarket industry) or a private jet company (air travel industry).
Bowman’s strategic clock
Another way of approaching the three generic strategies is with the strategy clock. This framework is based on prices instead of costs as it’s easier to compare competitors on prices than costs. It allows organisations to travel around the cost changing strategy or combining them opposed to Porter’s sharp contrast between the differentiation and cost leadership strategy. This framework or clock involves four different zones. The differentiation zone which goes from approximately 12 o’clock to 2 o’clock. Close to 12 o’clock the strategy moves towards differentiation without a price premium often used by firms to gain market share. Once the company has gained sufficient market share it can move towards 2 o’clock focusing on a differentiation