ABSTRACT
The chapter opens up with a discussion concerning the interaction between a corporation and the environment, i.e. whether the corporation can or cannot adapt to its environment. Porter's processes for creating environmental scenarios are given and the manner of interaction between the corporation and the environment is explored with a focus on the three main players (the 3C) in the strategic triangle. Strategic contemplation concerning both the environment and the corporation is recognised as a driver leading to the formation of business strategy. Generic strategies are classified, compared and contrasted and reinforced by practical examples showcasing their advantages and pitfalls. Finally, this chapter explores the action and the planning component of competitive strategy. Competitive strategy is classified into overall cost leadership, differentiation and focus and each item is discussed with parts exploring the sustainability of each generic strategy.
