Consider Porter's three generic strategies. Evaluate each of these three alternatives (by including a brief paragraph or a series of bullets, for each one) to determine which strategy your bike company should pursue. The one that you select for your firm will become a key part of your "vision' statement and will drive revisions to your firm's functional strategies (Marketing, Operations, Product Development and Finance).
Background Information About Michael Porter's Three Generic Strategies: Michael Porter, a well-known management expert, proposes that a firm's strengths ultimately fall into one of two categories: cost advantage or differentiation. Based on the scope of the market that is pursued, three generic strategies result: cost leadership, differentiation and focus. The focus strategy targets a narrow market segment whereas the other two strategies go after a broad, industry-wide market.
Porter's three generic strategies are described beginning on page 200 in Pearce and Robinson's Strategic Managementtextbook. The following website has an excellent description of Porter's three generic strategies: