A business’s overall competitive theme; the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that it can use in different industry settings.

When innovations push out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible.

The way a company decides to group customers, based on important differences in their needs, in order to gain a competitive advantage.

When a company decides to ignore different segments and produces a standardized product for the average consumer.

When a company decides to serve many segments, or even the entire market, producing different offerings for different segments.

When a company decides to serve a limited number of segments, or just one segment.

A strategy that gives a company a specific form of competitive position and advantage vis-à-vis its rivals, resulting in above-average profitability.

When a company lowers costs so that it can lower prices and still make a profit.

When a company differentiates its product in some way, such as by recognizing different segments or offering different products to each segment.

When a company targets a certain segment or niche and tries to be the low-cost player in that niche.

When a company targets a certain segment or niche and customizes its offering to the needs of that particular segment through the addition of features and functions.