Types of Strategies

Marketing strategies might differ depending on the unique condition of the individual business. However, there are numerous ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance:

In this scheme, companies or firms are classified based on their market share or dominance of an industry. Classically, there are four types of market dominance strategies: 

  • Leader 
  • Challenger 
  • Nicher 
  • Follower 

Porter generic strategies:

Strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The generic strategy framework (porter 1984) includes two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. 

  • Product differentiation (broad) 
  • Market segmentation (narrow) 
  • Cost leadership (broad)

Innovation strategies:

Innovation strategies deals with the firm's rate of the new product development and business model innovation. It asks whether the firm or company is on the cutting edge of technology and business innovation. There are three types: 

  • Pioneers
  • Late followers 
  • Close Followers

Growth strategies:

In this scheme, we ask the question, how should the firm grow? There are several different ways of answering that question, but the most common gives four answers: 

  • Vertical integration
  • Horizontal integration
  • Diversification 
  • Intensification 
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