constellation of variables

The business organization can be described as a constellation of variables -- variables whose inclusion or exclusion, organization, and interactions, i.e. their configuration, determine the outcome -- the value of the offering and the performance of the firm in producing the offering.

Competitive advantage is the result of superior configurations of the constellation of variable making up the business organization -- producing the advantages of Porter's generic focused strategies of cost leadership or product differentiation.

An alternative to executives wrestling with one of these two strategies, a focus on coherence may be much more effective, then testing that coherence against the extremes of cost leadership and product differentiation to ascertain its robustness and viability to compete effectively.