8.3 Grouping by Strategy

Businesses may be guided and constrained by common strategies, often grouped as:


Outside-in: what do our customers want or could want from us? Example: Tesco plc.

Inside Out

Inside-out: how can we sell what we've got or could develop? Example: Aurora Health Care.


Unbundled: how can get our businesses to improve by standing on their own feet? Example: Fiat.


Multisided: what strengths and economies can we achieve by getting our different divisions / acquisitions to work together? Example: Cisco


Government-supported: how can we use government aims and institutions to assist sales? Example: Glaxo's Zantac.


Loss leading: how can we attract customers with initially free or low-price offers? Example: Google services.

Long Tail

Long tail: how can we make a profit with the sale in small numbers of a great range of products? Example: PoD publishing

Open Model

Open model: how can sell what originally comes free? Example: Google Ads.

Custom Value Leader

Custom value leader: how can we be seen as the best in this market? Example: Intel.

Value Innovator

Value innovator: how can serve a need that hasn't been recognized before? Example: Netscape's SSL.

Customer Capitalizer

Customer capitalizer: how can we earn even more from our customers? Example: Nespresso.

Brand Capitalizer

Brand capitalizer: how can we improve and get more from our brand reputation? Example: P&G's Crest.


1. Name twelve business groupings by strategy.
2. Provide a brief case study for five such business groupings.

Sources and Further Reading

1. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers by Alexander Osterwalder and Yves Pigneur. Wiley 2010.